If bonds have been issued at a discount, over the life of the bonds, the

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CThe carrying value of bonds issued at a discount increases over time as the discount is amortized. This is because the discount on bonds payable (which represents the difference between the cash received and the par value of the bonds) is gradually added to the carrying value of the bonds through interest expense. If the discount is being amortized on a straight-line basis, the amount of interest expense recorded in each period increases over the life of the bonds, reflecting the addition of a portion of the discount to the carrying value.

If Bonds Have Been Issued at a Discount, Over the Life