A ten-year bond was issued in 20X4 at a discount with a call provision to retire the bonds. When the bond issuer exercised the call provision on an interest date in 20X6, the carrying value of the bond was less than the call price. The amount of bond liability removed from the accounts in 20X6 would be the
A) maturity value.
B) face amount plus unamortized discount.
C) call price.
D) carrying value.

Question

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The Answer of A ten-year bond was issued in 20X4 at a discount with a call provision to retire the bonds. When the bond issuer exercised the call provision on an interest date in 20X6, the carrying value of the bond was less than the call price. The amount of bond liability removed from the accounts in 20X6 would be the
A) maturity value.
B) face amount plus unamortized discount.
C) call price.
D) carrying value.

A Ten-Year Bond Was Issued in 20X4 at a Discount