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A Ten-Year Bond Was Issued in 2009 at a Discount

Question 105

Multiple Choice

A ten-year bond was issued in 2009 at a discount with a call provision to retire the bonds.When the bond issuer exercised the call provision on an interest date in 2011, the carrying amount of the bond was less than the call price.The amount of bond liability removed from the accounts in 2011 should have equaled the


A) call price.
B) call price less unamortized discount.
C) carrying amount.
D) face amount.

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