Wayne Company issued bonds with a face value of $1,020,000, a 10% stated rate of interest, and a 10-year term. The bonds were issued on January 1, Year 1, and Wayne uses the straight-line method of amortization. Interest is paid annually on December 31.   Assuming Wayne issued the bonds for 106, what is the carrying value of the bonds on the December 31, Year 1 balance sheet?

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