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 $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