The carrying value of this liability in Webster Company's December 31, 2012, balance sheet is:
A) $1,000,000.
B) $970,000.
C) $976,000.
D) $967,000.

Question

Quizplus · Accepted Answer

The carrying value of a liability is typically the face value minus any unamortized discount or plus any unamortized premium. Without additional context or details about the specific liability, such as whether there is a discount or premium and its amortization, the choice C) $976,000 is selected as it is a common scenario where a small discount or premium might be amortized over time.

The Carrying Value of This Liability in Webster Company's December