On January 1, Besalius Inc. issued \(\$ 1,000,000,9 \%\) bonds for \(\$ 939,000\). The market rate of interest for these bonds is \(10 \%\). Interest is payable annually on December 31.

Besalius uses the effective interest method of amortizing bond discount. At the end of the first year, Besalius should report unamortized bond discount of:

a. \(\$ 54,900\).

b. \(\$ 57,100\).

c. \(\$ 51,610\).

d. \(\$ 51,000\).