What amount should Luling report in its December 31, 20X1, financial statements as carrying value of bonds payable (on issue of July 1 only) in its governmentwide statements for the following example:

"On July 1 it issued 10year, 4 percent bonds with a face value of $1 million. The bonds were sold for $1,016,510, an amount that provides an annual yield of 3.8 percent (semiannual rate of 1.9 percent). The city incurred $10,000 in issue costs."

I know the answer is 1,015,824 but can you please provide and explanation and calculation?