On August 1, 2021, 8% bonds with face value of $7,000,000 were issued for $7,850,000. The bonds were priced to yield 5%. Interest is payable semiannually on February 1 and August 1. If the effective interest method is used, how much is the carrying value of the bonds payable after the adjusting entry made on December 31, 2021?

Multiple Choice

$7,780,208

$7,686,458

$8,013,542

$7,919,792