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(31) On January 2, current year, Kalahari Limited issued $1,000,000, 10-year bonds for $1,150,000. The bonds pay interest on June 30 and December 31.

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(31) On January 2, current year, Kalahari Limited issued $1,000,000, 10-year bonds for $1,150,000. The bonds pay interest on June 30 and December 31. The interest rate is 10%. What is the carrying value of the bonds after the first interest payment is made on June 30, current year? a. $1,154,000 b. $1,142,500 c. $1,142,400 d. $1,000,000

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