On January 1, Year 1, Sheffield Company issued bonds with a face value of $220,000, a term of ten years, and a stated interest rate of 6%. The bonds were issued at 105, and interest is payable each December 31. Sheffield uses the straight-line method to amortize bond discounts and premiums. What is the carrying value of the bonds at December 31, Year 4?

Multiple Choice

a) $224,400

b) $226,600

c) $220,000

d) $225,500