Webster Company issues $1,000,000 face value, 6%, 5-year bonds payable on December 31, 2011. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Webster uses the straight-line method of amortizing bond discount or premium.

38.

The carrying value of this liability in Webster Company's December 31, 2012, balance sheet is:

	$1,000,000.
	$970,000.
	$976,000.
	$967,000.