Pepper Ltd. (Pepper) owns 75% of Sage Corp. (Sage) and uses the equity method to account for its investment. Pepper has a $240,0000 bond issue outstanding that pays 12% interest annually. Interest payment dates are June 30 and December 31 each year. The bonds were originally issued at a discount. The unamortized bond discount is $20,000. The bonds mature on January 1,2033 . On January 1,2023 , Sage purchased $120,000 par value, 12% bonds for $100,000. Straight line amortization is used to amortize the discount. Both companies have a December 31 year end. Intercompany bond gains and losses are to be allocated to each company. During 2023 , Sage earned a net income of $80,000 and paid dividends of $20,000. What amount would be shown on Pepper's consolidated balance sheet at December 31, 2023 under bonds payable? (3 marks) a. $220,000 b. $111,000 c. $112,000 d. $110,000