On January 1, Weatherholt Inc

Multiple Choice

On January 1, Weatherholt Inc. issued $4,000,000, 9% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Jean Loptein uses the effective-interest method of amortizing bond discount. At the end of the first year, Weatherholt should report unamortized bond discount of

A) $219,600.
B) $228,400.
C) $206,440.
D) $204,000.