The carrying value of this liability in Trego Company's December 31, 2012, balance sheet is:
A) $1,000,000.
B) $1,016,000.
C) $1,020,000.
D) $1,024,000.

Question

Quizplus · Accepted Answer

The carrying value of a liability is typically the face value plus any unamortized premium or minus any unamortized discount. Without additional context or details about the liability, such as whether it includes a premium or discount, the choice closest to the face value is often correct. In this case, $1,016,000 is likely the carrying value after accounting for any adjustments.

The Carrying Value of This Liability in Trego Company's December