Question - Garland Company received proceeds of $188,000 on 10-year, 9% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Garland uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2016?
A. $200,000
B. $190,400
C. $191,600
D. $189,200
E. None of the above.