On July 1, 2016, Garden Works, Inc. issued $301,400 of ten-year, 7% bonds for $308,800. The bonds were dated July 1, 2016, and semi-annual interest will be paid each December 31 and June 30. Garden Works Inc. uses the straight-line method of amortization. What is the net amount of the bond liability to be reported on the December 31, 2016 balance sheet?

$308,430.

$308,060.

$308,800.

$301,400.