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Ridgewood, Inc. issues $1,000,000 face value, 8%,5-year bond on January 1,2023. Interest is paid semiannually...

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Accounting

Ridgewood, Inc. issues $1,000,000 face value, 8%,5-year bond on January 1,2023. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 95; Ridgewood uses the straight-line method of amortizing bond discount or premium.
Before payment, the net carrying value of the bond in Ridgewood's December 31,2027, financial statements will be (rounded to the nearest thousands $):
Select one:
a. $950,000.
b. $1,080,000.
c. $1,000,000.
d. $1,050,000.
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