If bonds have been issued at a discount, then over the life of the bonds the
A) carrying amount of the bonds will decrease.
B) carrying amount of the bonds will increase.
C) interest expense will decrease.
D) unamortized discount will increase.

Question

Quizplus · Accepted Answer

When bonds are issued at a discount, the carrying amount increases over time as the discount is amortized and added to the bond's carrying value, moving it closer to its face value by the maturity date.

If Bonds Have Been Issued at a Discount, Then Over