On December 31, 2006, Roberts Company sold $100,000, ten-year, 8% bonds at 104.5. The bonds were dated January 1, 2006, and interest is payable each December 31. The company uses the straight-line amortization method. The company should report the long-term liability (carrying value) for the bonds on the December 31, 2006, balance sheet as:
A) $100,000.
B) $103,400.
C) $104,000.
D) $104,500.
E) None of the above is correct.