On January 1, Year 1, Wayne Company issued bonds with a face value of $780,000, a 12% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums. Assuming Wayne issued the bonds for 105, what is the carrying value of the bonds on the December 31, Year 1 balance sheet?

$819,000 $822,900 $815,100 $783,900