On January $1,$ Year $1,$ Jones Company issued bonds with a $$260,000$ face value, a stated rate of interest of $7\mathrm{.}5\%,$ and a $5-$year term to maturity. The bonds were issued at $98.$ Interest is payable in cash on December $31$st of each year. The company amortizes bond discounts and premiums using the straight$-$line method.

What is the total amount of liabilities shown on Jones' balance sheet at December $31,$ Year $2?$

Multiple Choice

$$254,800$

$$256,880$

$$255,840$

$$252,720$