Presented Here Is a Partial Amortization Schedule for Graceland Company $\quad$

Multiple Choice

Presented here is a partial amortization schedule for Graceland Company who sold $100000 five year 10% bonds on January 1 2016 for $108000 and uses annual straight-line amortization. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { BOND AMORTIZATION SCHEDULE }$
$\begin{array}{|c|c|c|c|c|c|}\hline\text { Interest Period } & \begin{array}{c}\text { Interest } \\\text { Paid }\end{array} & \begin{array}{c}\text { Interest } \\\text { Expense }\end{array} & \begin{array}{c}\text { Premium } \\\text { Amortization }\end{array} & \begin{array}{c}\text { Unamortized } \\\text { Premium }\end{array} & \begin{array}{c}\text { Bond Carrying } \\\text { Value }\end{array} \\\hline \text { January 1,2016 } & & & & \$ 8,000 & \$ 108,000 \\\hline \text { January 1,2017 } & \text { (i) } & \text { (ii) } & \text { (iii) } & \text { (iv) } & \text { (v) }\\\hline\end{array}$ Which of the following amounts should be shown in cell (v) ?

A) $109600
B) $108800
C) $106400
D) $107200