On January 1,Year 1,Sheffield Co

Multiple Choice

On January 1,Year 1,Sheffield Co.issued bonds with a face value of $200,000,a term of ten years,and a stated interest rate of 6%.The bonds were issued at 105,and interest is payable each December 31.Sheffield uses the straight-line method to amortize bond discounts and premiums.What is the carrying value of the bonds at December 31,Year 4?

A) $204,000
B) $200,000
C) $205,000
D) $206,000