Discount-Mart issues $20 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds:

Date	Cash Paid			Interest Expense			Increase in Carrying Value			Carrying Value
01/01/2021										$	17,706,016
06/30/2021	$	1,000,000		$	1,062,361		$	62,361			17,768,377
12/31/2021		1,000,000			1,066,103			66,103			17,834,480
06/30/2022		1,000,000			1,070,069			70,069			17,904,549
12/31/2022		1,000,000			1,074,273			74,273			17,978,822

What is the carrying value of the bonds as of December 31, 2022?

Multiple Choice

• $17,904,549.

• $19,978,822.

• $17,978,822.

• $17,834,480.