On October 1, 2007, Ming Co

On October 1, 2007, Ming Co. purchased 600 of the $1,000 face value, 8% bonds of Loy, Inc., for $702,000, including accrued interest of $12,000. The bonds, which mature on January 1, 2014, pay interest semiannually on January 1 and July 1. Ming used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Ming's December 31, 2008 balance sheet, the carrying value of the bonds is

A) $690,000.
B) $684,000.
C) $681,600.
D) $672,000.