On January 1, 2020, Rama Inc. issued 1,000,000 10-year bonds for $1,150,000. The bonds pay interest June 30 and December 31. The stated rate is 10% and the market rate is 8%. Rama plans to use the effective interest method for amortizing bond discounts and premiums. Which of the following statements is correct?

Multiple Choice

• The interest payment for 2020 is $91,840

• The interest expense for 2020 is $100,000

• The amount of amortization for 2020 is 4,000

• The carrying value of bonds payable on December 31, 2020 is $1,146,000.

• The carrying value of bonds payable on December 31, 2020 is $1,141,840