On January 1, Holly Ester Inc. issued \(\$ 1,000,000\), 10 -year, \(9 \%\) bonds for \(\$ 938,554\). The market rate of interest for these bonds is \(10 \%\). Interest is payable annually on December 31 . Holly Ester uses the effective-interest method of amortizing bond discount. At the end of the first year, Holly Ester should report unamortized bond discount of:

a. \(\$ 54,900\).

b. \(\$ 57,591\).

c. \(\$ 51,610\).

d. \(\$ 51,000\).