Auerbach Inc. issued 6% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $200 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 8%.

Assuming that Auerbach issued the bonds for $172,818,000, what would the company report for its net bond liability balance at December 31, 2018, rounded up to the nearest thousand?(Do not round intermediate calculations.)

Multiple Choice

• $175,818,000.
• $173,274,000.
• $169,818,000.
• $199,000,000.