A corporation issues $10 million in bonds on January 1, 2024. The bonds have a nine-year term and pay interest
semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the
bonds:
Increase in
Interest
Date
Cash Paid Expense
Carrying
Value
Carrying
Value
01/01/2024
$8,831,042
06/30/2024
$400,000
$441,552
$41,552
8,872,594
12/31/2024
400,000
443,630
43,630
8,916,224
06/30/2025
400,000 445,811
45,811
8,962,035
12/31/2025
400,000
448,102
48,102
9,010,137
What is the carrying value of the bonds as of December 31, 2025?