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Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date...

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Accounting

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $390 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $331,980,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022?

Multiple Choice

$334,139,400

$336,296,680

$329,818,660

$331,978,000

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