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On January 1, 2016, a company issued $400,100 of 10-year, 12% bonds. The interest is...

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Accounting

On January 1, 2016, a company issued $400,100 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $413,353 based on a 10% market interest rate. The effective-interest method of amortization is used. What is the book value of the bond liability as of June 30, 2016 (to the nearest dollar)?

$400,100.

$416,691.

$403,438.

$410,015.

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