The following amortization schedule is related to a bond issuance on January $1,2020.$

Amortization Schedule

Cash Interest Effective Interest Amortization amount Carrying value

$01/01/20$ $$38,934$

$07/01/20$ $$1,200$ $$1,363$ $$16339,097$

$01/01/211,2001,36816839,265$

$07/01/211,2001,37417439,440$

$01/01/221,2001,38018039,620$

$07/01/221,2001,38718739,807$

$01/01/231,2001,39319340,000$

$$7,200$ $$8,266$ $$1,066$

The net amount of liability that the company reports on December $31,2020$ is

Group of answer choices

$$39,097.$

$$38,934.$

$$40,000.$

$$39,265.$