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Question - On December 31, Year 1, Airways Corp. issued $1 million in bonds at 5 percent annual interest, due December 31, Year 6 at a discount of $ 100,000. Airways incurred bank fees of $ 100,000, legal fees of $50,000, and salaries of $25, 000 for its employees in conjunction with issuing the bonds. What is the original carrying amount for these bonds?
1. $725,000
2. $750,000
3. $850,000
4. $900,000
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