On January 1, 2008, Gomez Co

On January 1, 2008, Gomez Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1, 2018. The bonds were issued for $3,405,000 to yield 8%, resulting in bond premium of $405,000. Gomez uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2008, Gomez's adjusted unamortized bond premium should be

A) $405,000.
B) $377,400.
C) $364,500.
D) $304,500.