Sassy’s trial balance shows $200,000 face value of bonds with a discount balance of $2,000. The bonds mature in 10 years. How will the bonds be presented on the balance sheet?

a. Bonds payable $198,000 (net of $2,000 discount) will be listed as a long-term liability.

b. Bonds payable $200,000 will be listed as a long-term liability. A $2,000 discount on bonds payable will be listed as a contra current liability.

c. Bonds payable $200,000 will be listed as a long-term liability.

d. Bonds payable $200,000 will be listed as a long-term liability. A $2,000 discount on bonds payable will be listed as a current liability.