On January 1 of Year 1. Congo Express Alrways issued $3,770,000 of 7% bonds that pay interest semiamually on January 1 and July 1. The bond issue price is $3,440,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $11,000 every six months. The company's December 31 . Year 1 balance sheet should reflect total llabilitles assoclated with the bond issue (including interest) in the amount of: $4,078,000 $3,462,000 $3,593.950 $3,330,050 $4.209.950