On November 1, 2021, Blossom Company purchased 1000 of the $1000 face value, 9% bonds of Ramsey, Incorporated, for $1055000, which includes accrued interest of $15100. The bonds, which mature on January 1, 2026, pay interest semiannually on March 1 and September 1. Assuming that Blossom uses the straight-line method of amortization and that the bonds are appropriately classified as held-to-maturity, the carrying value of the bonds should be shown on Blossom's December 31, 2021, balance sheet at

1. 1000000

2. 1055000

3. 1039900

4. 1038304