Victor Company issued bonds with a $250,000 face value and a 6% stated rate of interest on January 1, 2016. The bonds carried a 5-year term and sold for 95. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year.
The carrying value of the bond liability on the December 31, 2018 balance sheet was:
A. $241,000.
B. $242,500.
C. $237,500.
D. $245,000.
