On January 1 of Year 1,Congo Express Airways Issued $3,500,000

Multiple Choice

On January 1 of Year 1,Congo Express Airways issued $3,500,000 of 7% bonds that pay interest semiannually on January 1 and July 1.The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%.The bond premium or discount is being amortized at a rate of $10,087 every six months.The company's December 31,Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:

A) $3,220,000.
B) $3,340,063.
C) $3,097,500.
D) $3,780,000.
E) $3,902,500.