VB Ltd.raises $150,000 by issuing a financial instrument that pays interest at a rate of 8% per year to the investor.At the end of the fourth year,the financial instrument is retired for $155,000.If the financial instrument is treated as equity then:
A) The repayment will decrease owners' equity
B) The interest payment decreases retained earnings
C) If premium on repayment was not known, it is recorded as a loss on the income statement
D) Long-term liabilities is increased at issuance

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The Answer of VB Ltd.raises $150,000 by issuing a financial instrument that pays interest at a rate of 8% per year to the investor.At the end of the fourth year,the financial instrument is retired for $155,000.If the financial instrument is treated as equity then:
A) The repayment will decrease owners' equity
B) The interest payment decreases retained earnings
C) If premium on repayment was not known, it is recorded as a loss on the income statement
D) Long-term liabilities is increased at issuance

VB LtdRaises $150,000 by Issuing a Financial Instrument That Pays Interest