Suppose $1,000,000 of 8%, 6-year debt is issued by ABC Co. on January 1, 2015, when the market interest rate is 6%. Interest is payable annually on December 31. ABC Co has elected the amortized cost method of reporting this debt. Suppose on January 1, 2018 when the market rate of interest on comparable debt is 10%, ABC Co. decides to restructure the debt with a $3,500 sweetener. The book value of the bonds on January 1, 2018, is