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Liberty Company Issued Ten-Year Bonds at 105 During the Current

Question 70

Multiple Choice

Liberty Company issued ten-year bonds at 105 during the current year. In the year-end financial statements, the premium should be:


A) Reported as an intangible asset.
B) Included in revenue for the year of sale.
C) Deducted from bonds payable.
D) Added to bonds payable.

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