On June 1, Greendale Corp. issued $700,000, five year bonds at 8%, with interest payable annually on May 31. The bonds sold for $728,700 when the market rate of interest was 7%. Greendale uses the effective interest method for amazing for amortizing premiums on bonds paybale. What is the balance of the premiums on bonds payable account immediately following the first interest payment?

a. $22,960

b. $23,709

c. $33,691

d. $34,440