On October 1, 2020, Moray Ltd. purchased 500 of the $1,000 face value, 8% bonds of Eel Ltd. for $585,000, including accrued interest of $10,000. The bonds, which mature on January 1, 2027, pay interest semi-annually on January 1 and July 1. Moray used the straight-line method of amortization and appropriately recorded the bonds as long-term. On Moray's December 31, 2021 balance sheet, the carrying value of the bonds would be

$570,000.

$568,000.

$560,000.

$575,000.