On January 1, Year 1, Sheffield Co. issued bonds with a face value of $180,000, a term of ten years, and a stated interest rate of 7%. The bonds were issued at 106, and interest is payable each December 31. Sheffield uses the straight-line method to amortize bond discounts and premiums. What is the carrying value of the bonds at December 31, Year 4?
A. $186,480
B. $184,320
C. $185,400
D. $180,000
Answer: A
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