The carrying value of this liability in Trego Company's December 31,2019,balance sheet is:
A)$1,000,000.
B)$1,016,000.
C)$1,020,000.
D)$1,024,000.

Name: The carrying value of this liability in Trego Company's December 31,2019,balance sheet is: A)$1,000,000. B)$1,016,000. C)$1,020,000. D)$1,024,000.
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Question

Quizplus · Accepted Answer

The carrying value of the liability is the face value of the bond minus the unamortized discount, which is $1,020,000 - $4,000 = $1,016,000. Therefore, the correct answer is B.

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