Blanding Company Issues $1,000,000 of 8%,10-Year Bonds at 98 on February

Blanding Company issues $1,000,000 of 8%,10-year bonds at 98 on February 28,2014.The bond pays interest on February 28 and August 31.The market rate of interest on the issuance date was 10%.Assume Blanding uses the straight-line method for amortization.What net balance will be reported for the bonds on the balance sheet on August 31,2014?

A) $981,000
B) $1,000,000
C) $979,000
D) $980,000