The entity purchased 6,000,000 12% bonds on January 1,2021. The interest is payable annually. The bond indenture indicates that the bonds must be payable for 3 equal annual installment starting Dec.31,2021. The effective interest of the bond is 14%. How much is the carrying amount of the bonds at December 31,2021? Group of answer choices A. 4,000,000 B. 3,899,045 C. 3,907,320 D. 3,800,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The entity purchased 6,000,000 12% bonds on January 1,2021. The interest is payable annually. The bond indenture indicates that the bonds must be payable for 3 equal annual installment starting Dec.31,2021. The effective interest of the bond is 14%. How much is the carrying amount of the bonds at December 31,2021?

Group of answer choices

A. 4,000,000

B. 3,899,045

C. 3,907,320

D. 3,800,000

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