On January 1, 2018 when the effective interest rate was 12%, Philips Co. issued bonds with a maturity value of $200,000. The stated rate of interest is 12% and the bonds pay interest semi-annually. Philips Co. paid $2,000 in bond issue costs on this date. Under IFRS the bonds will be recorded on the January 1, 2018 balance sheet of Philips Co. at:

Multiple Choice

A $200,000

B $202,000

C $198,000

D Cannot be determined based on the information provided.