On January 1, 2021, Solo Inc. issued 1,800 of its 12%, $1,000 bonds at 97.5. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. Solo paid $50,000 in bond issue costs. Solo uses straight-line amortization. What is the carrying value of the bonds reported in the December 31, 2021, balance sheet?

Multiple Choice

• $1,829,500.

• $3,290,000.

• $3,240,000.

• $1,714,500.