$4$

$3$ points

On January $1,$ Year $1,$ Booker Corporation issued a $$5,000$ face value bond that sold for $90.$ The bond had a five$-$year term and paid $10\%$ annual interest. The company used the proceeds from the bond issue to buy land. The land was leased for $$600$ of cash revenue per year and was sold at the end of the $5$ th year for $$4,200$ cash. The carrying value of the bond liability on December $31,$ Year $2$ would be

$$5,000.$

$$4,500.$

$$4,900.$

$$4,700.$