A. $345,480 B. $390,000 C. $349,191 D. $347,299

McAuliffe Corporation issued $400,000 of 6% 10-year bonds. The bonds are dated and sold on January 1, 20X1. Interest payment dates are January 1 and July 1. The bonds are issued for $345,480 to yield the market interest rate of 8%. Using the effective-interest method, what is the carrying amount of the bonds on the January 1, balance sheet? $345,480 $390,000 $349,191 $347 ,299