Hillsborough Glassware Company Issues $1,061,000 of Its 11%,10-Year Bonds at 96

Hillsborough Glassware Company issues $1,061,000 of its 11%,10-year bonds at 96 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) $1,020,682
B) $1,061,000
C) $1,016,438
D) $1,018,560