On January 1 of Year 1, Congo Express Airways issued $2,250,000 of 5% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,030,000 and the market rate of interest for similar bonds is 6%. The bond premium or discount is being amortized at a rate of $7,333 every six months. The company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue (including interest) in the amount of:

Multiple Choice

• $1,988,416.

• $2,044,666.

• $2,100,916.

• $2,511,584.

• $2,455,334.