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Please show all work On January 1 of Year 1, Congo Express Airways issued $3,750,000...

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Accounting

Please show all work

On January 1 of Year 1, Congo Express Airways issued $3,750,000 of 8% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,440,000 and the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized at a rate of $10,333 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:

A. 3,310,666 D.3,610,666

B.4,189,334 E.4,039,334

C.3,460,666

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