The carrying amount of bonds will equal the market price:
A) at the end of the fiscal period.
B) at the close of every business day.
C) on the date the bond is issued.
D) only when the bonds are converted to common stock.

Question

Quizplus · Accepted Answer

The carrying amount of bonds equals the market price on the date the bond is issued because the bond is initially recorded at its issuance price, which is the market price at that time.

The Carrying Amount of Bonds Will Equal the Market Price