Wayne Company issued bonds with a face value of $930,000, a 10% stated rate of interest, and a 10-year term. The bonds were issued on January 1, Year 1, and Wayne uses the straight-line method of amortization, Interest is paid annually on December 31.

Assuming Wayne issued the bonds for 106, the carrying value of the bonds on the December 31, Year 1 balance sheet would be:

A. $935,580

B. $980,220

C. $991,380

D. $985,800