On January 1, 2021, Banana Company issued bonds payable with face amount of P8,000,000 at 10% stated interest rate at 115. The bonds have a 5-year term, and interest is payable annually every December 31. The company uses the straight-line method in amortizing the bond discount or premium.

What is the carrying amount of the bond as of December 31, 2021?

1. 9,200,000

2. 9,200,000

3. 8,000,000

4. 8,960,000