On December 31, Year 1, Vaughan, Inc., issued $200,000, 8% serial bonds, to be repaid in the amount of $40,000 each year. Interest is payable annually on December 31. The bonds were issued to yield 10% per year. The bond proceeds were $190,280 based on the present values at December 31, Year 1, of the five annual payments:
Due Date Principle Due Interest Due Present Value at 12/31/1
12/31/2 $40,000 $16,000 $50,900
12/31/3 $40,000 $12,800 $43,610
12/31/4 $40,000 $9,600 $37,250
12/31/5 $40,000 $6,400 $31,690
12/31/6 $40,000 $3,200 $26,830
$190,280
Vaughan amortizes the bond discount by the effective interest method. In its December 31, Year 2, balance sheet, at what amount should Vaughan report the carrying amount of the bonds?