On January 1, Year 1, Sheffield Company Issued Bonds with a Face

On January 1, Year 1, Sheffield Company issued bonds with a face value of $440,000, a term of ten years, and a stated interest rate of 5%. The bonds were issued at 104, 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) $447,040
B) $450,560
C) $448,800
D) $440,000