Table 15-3 Redding Corporation Issued $400,000 of 10%, Five-Year Bonds. the Bonds

Table 15-3
Redding Corporation issued $400,000 of 10%, five-year bonds. The bonds are dated and sold on February 1, 2017. Interest payment dates are February 1 and August 1. The market interest rate is 8% and the bonds are sold for $432,442. The company uses the effective-interest method of amortization.
-Refer to Table 15-3.What is the carrying value of the bonds on the December 31,2017,balance sheet,assuming all adjusting entries have been made?

A) $429,739.70
B) $437,837.10
C) $427,397.67
D) $400,000