On July 1, 2014, Garden Works, Inc

On July 1, 2014, Garden Works, Inc. issued $300,000 of ten-year, 7% bonds for $303,000. The bonds were dated July 1, 2014, and semi-annual interest will be paid each December 31 and June 30. Garden Works Inc. uses straight-line amortization. What is the bond liability to be reported on the December 31, 2014 balance sheet?

A) $300,000.
B) $302,850.
C) $302,700.
D) $303,000.