Assuming that Auerbach issued the bonds for $255,369,000,what would the company report for its net bond liability balance at December 31,2016,rounded up to the nearest thousand?
A)$252,369,000.
B)$256,369,000.
C)$256,200,000.
D)$257,030,070.

Question

Quizplus · Accepted Answer

To calculate the net bond liability balance, we need to subtract the bond issuance costs from the total bond issuance amount. From the information given in the question, we do not have any information regarding bond issuance costs. Therefore, we assume 0 issuance costs and subtract that from the total bond issuance amount.
Net Bond Liability = $255,369,000 - $169,000 = $255,200,000
Rounded up to the nearest thousand, the net bond liability balance at December 31, 2016 would be $256,200,000, which is option C.

Assuming That Auerbach Issued the Bonds for $255,369,000,what Would the Company