On October 1, 2018, Sunland Company purchased to hold to maturity, 3,400, $1,000, 10% bonds for $3,660,000 which includes $54,000 accrued interest. The bonds, which mature on February 1, 2027, pay interest semiannually on February 1 and August 1. Sunland uses the straight-line method of amortization. The bonds should be reported in the December 31, 2018 balance sheet at a carrying value of

$3,400,000.

$3,606,000.

$3,599,820

$3,660,000.