The carrying value of a bond is computed as the face value minus any unamortized discount...

Question

Question

The carrying value of a bond is computed as the face value minus any unamortized discount or plus any unamortized premium. 17

business accounting

Answer 1

Answer #1

Answer : TRUE

Bonds Ca issue at Par, Discount or Premium . Bond Carrying Value in Balance sheet will be Shown as

If bond Has Unamortized Discount

Carrying Value = bond Face Value - Unamortized discount

It the Bond Has Unamortized Premium

Carrying Value = Bonds Face Value + Unamortized Premium

Answer 2

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