46. Baker Company issues $100,000 of 12%, five-year bonds fo…

46. Bаker Cоmpаny issues $100,000 оf 12%, five-yeаr bоnds for $96,500. Interest is paid every six months. Baker uses straight-line amortization. The total bond discount is $3,500. There are 10 semiannual interest periods, so Baker amortizes $350 of the discount during each interest period. The carrying amount at issuance is $96,500. The carrying amount increases by $350 after each semiannual interest payment. What is the carrying amount of the bonds after three semiannual interest payments? 1. $96,850 2. $97,200 3. $97,550 4. $98,950 Instructions to students: Type in the number of the answer of your choice (type in either 1, 2, 3, or 4). Do not type in a decimal after inputting the number.