The carrying value of this liability in Webster Company's December 31,2019,balance sheet is:
A)$1,000,000.
B)$970,000.
C)$976,000.
D)$967,000.

Question

Quizplus · Accepted Answer

The carrying value of the bond payable as of December 31, 2019, is the face value of $1,000,000 less the discount of $24,000 ($1,000,000 x 0.024) accumulated over the life of the bond. Therefore, the carrying value of the liability is $976,000 ($1,000,000 - $24,000).

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