The face value of a bond payable minus the current balance of the discount account plus the current balance of the premium account is the bond's carrying amount.

Name: The face value of a bond payable minus the current balance of the discount account plus the current balance of the premium account is the bond's carrying amount.
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Question

Quizplus · Accepted Answer

This statement is true. The carrying amount of a bond is calculated by taking the face value of the bond and adjusting it by any unamortized discount or premium.

The Face Value of a Bond Payable Minus the Current