Accounting. Show work please!!

On 1 January 2010, Elegant Fragrances Company issues $1,000,000 face value, five-year bonds with annual interest payments of $55,000 to be paid each 31 December. The market interest rate is 6%. Using the effective interest rate method of amortization, Elegant Fragrances is most likely to record: A. An interest expense of $55,000 on its 2010 income statement B. A liability of $982, 674 on its 2010 balance sheet C. A $58, 736 cash outflow from operating activity on 2010 cash flow statement