Five years ago, Ella's issued 10-year $1,000,000 bonds. At

Five years ago, Ella's issued 10-year $1,000,000 bonds. At issuance, the bonds had a discount of $80,000. Ella's uses the straight-line method of amortization.

What is the carrying amount of the bonds today (after five full years)?

a. $1,000,000

b. $920,000

c. $960,000

d. $1,040,000

e. None of the other alternatives are correct


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