On July 1, 2019, Garden Works, Inc. issued $301,800 of ten-year, 7% bonds for $308,400. The bonds were dated July 1, 2019, 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, 2019 balance sheet?

$301,800.

$308,070.

$307,740.

$308,400.