A ten-year bond was issued in 2014 at a discount with a call provision to retire the bonds. When the bond issuer exercised the call provision on an interest date in 2016, the carrying value of the bond was less than the call price.The amount of bond liability removed from the accounts in 2016 would be the
A)call price.
B)maturity value.
C)carrying value.
D)face amount plus unamortized discount.

Question

Quizplus · Accepted Answer

The amount of bond liability removed from the accounts when a bond is called is the carrying value of the bond at the time of the call.

A Ten-Year Bond Was Issued in 2014 at a Discount