On January 1, Year 1, Victor Company issued bonds with a $40…
On January 1, Year 1, Victor Company issued bonds with a $400,000 face value, a stated rate of interest of 3%, and a 5-year term to maturity. The bonds sold at 93. Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premiums.What is the carrying value of the bond liability at December 31, Year 3?