Bond discount should be presented in the financial statements of the issuer as a(n)

Name: Bond discount should be presented in the financial statements of the issuer as a(n)
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Bond discount represents the difference between the face value of bonds issued and the proceeds received by the issuer. This amount is subtracted from the face value of the bonds to arrive at the carrying amount of the liability. Therefore, bond discount should be presented in the financial statements as a contra liability.

Bond Discount Should Be Presented in the Financial Statements of the Issuer