Hillsborough Glassware Company Issues $1,042,000 of Its 14%,10-Year Bonds at 97

Hillsborough Glassware Company issues $1,042,000 of its 14%,10-year bonds at 97 on February 28,2017.The bonds pay interest on February 28 and August 31.Assume that Hillsborough uses the straight-line method for amortization.What net amount will be reported for the bonds on the August 31,2017 balance sheet?

A) $1,012,303
B) $1,042,000
C) $1,009,177
D) $1,010,740