On January 1, 2009, Zebra Corporation issued 1,000 of its 8%, $1,000 bonds at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2019. Zebra paid $50,000 in bond issue costs. Zebra uses the straight-line amortization method. What is the bond carrying value reported in the December 31, 2009, balance sheet?
A. $1,045,000.
B. $1,040,000.
C. $987,000.
D. $982,000.

I don't get how the answer is D, is the issue costs a distractor?

Also my work: I did 98% x 1000 = 980 but didn't know what to do next

in my opinion the answer is A