Consider a $1,000,000 bond that was issued on January 1, 2020 for $922,780. Interest of $40,000 is paid semi-annually on July 1 and January 1. Assuming that the bond was sold to yield 10% and the discount is accounted for using the effective interest method, the bonds carrying amount after the first interest payment on July 1, 2020 is

$928,919.

$923,111.

$962,780.

$922,780.