On January 1, 20X1, Washer Company Sold (Issued) 600, $1,000

On January 1, 20X1, Washer Company sold (issued) 600, $1,000, five-year, 8% bonds at 95. The bonds were dated January 1, 20X1, and interest is payable each June 30 and December 31. The company uses the straight-line method of amortization. What is the amount of the net liability for bonds payable that would be reported on the December 31, 20X1, statement of financial position?

A) $573,000
B) $576,000
C) $597,000
D) $600,000