Question
Auerbach Incorporated issued 4% bonds on October 1, 2024. The bonds have a maturity date of September 30, 2034 and a face value of $600
Auerbach Incorporated issued 4% bonds on October 1, 2024. The bonds have a maturity date of September 30, 2034 and a face value of $600 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2025. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $510,737,640, what would the company report for its net bond liability balance on December 31, 2024. Note: Round your answer to the nearest thousand. Do not round intermediate calculations.
Multiple Choice
$516,738,000
$504,738,000
$599,000,000
$512,399,000
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