A ten-year bond was issued in 2017 at a discount with a call provision to retire the bonds.When the bond issuer exercised the call provision on an interest date in 2016, the carrying value of the bond was less than the call price.The amount of bond liability removed from the accounts in 2019 would be the

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When the bond issuer exercises the call provision, they purchase the bond from the bondholder at the call price, which is usually higher than the carrying value (or the book value) of the bond. Therefore, the bond liability removed from the accounts in 2019 would be the carrying value, as this is the amount that the issuer would have paid to retire the bond.

A Ten-Year Bond Was Issued in 2017 at a Discount