On December 31, 2020, Reyes Company issued P2,000,000, 12% serial bonds to be repaid in the amount of P500,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% a year. The bonds proceeds were P2,083,000 based on the present values at December 31, 2020. Reyes company amortizes the bond discount by the interest method.

In its December 31, 2021 statement of financial position, what amount should Reyes Company report the carrying amount of the bonds?

Group of answer choices

2,051,300

1,531,700

2,083,000

1,551,300