On January 1, 2026, $1,000,000, 10-year, 10% bonds, were issued for $970,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method (i.e., spread out evenly over 10 years) to amortize discount on bonds payable, the annual interest expense reported on the income statement is: O $97,000 O $130,000 O $100,000 O $103,000