On January $1,2018,$ Peony$,$ Inc. issued $ $5,100,000$ par value $12\%,5$ year bonds. Interest is payable semiannually on January $1$ and July $1$ with the first interest payment on July$1,2018.$ The market rate of interest on the date of the bond issue was $14\%.$ Peony retired the debt early at the end of the third year for $ $3,200,000.$ Determine the carrying value of the bond at retirement. Also, prepare the journal entry to record the early retirement of the debt at the end of the third year.