On January 1, 2019, Stacy Corporation issued 5-year $100,000 bonds with a 4% stated rate of interest at 97.

On January 1, 2019, Stacy Corporation issued 5-year $100,000 bonds with a 4% stated rate of interest at 97. Stacy Corporation pays the interest annually on December 31 and uses the straight-line amortization method. What is the carrying value of the bonds that Stacy Corporation will report on its balance sheet at the end of 2019?

a.$96,400

b.$97,000

c.$97,600

d.$100,000