On January 1, 2026, $1,000,000, 10-year, 10% bonds, were issued for $1,030,000. 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 premiums on bonds payable, the annual interest expense reported on the income statement is:

Group of answer choices

$97,000

$130,000

$100,000

$103,000