Asked by
Isabelle Reitz
on Nov 13, 2024
Verified
If bonds are sold for a discount, the carrying value of the bonds is equal to the face value less the unamortized discount.
Unamortized Discount
The portion of a bond discount that has not yet been expensed to interest expense over the bond's life.
Carrying Value
The book value of an asset as reflected in a company's financial statements, calculated as the original cost minus accumulated depreciation.
- Familiarize yourself with the foundational elements and computations concerning bond issuance, specifically premiums, discounts, and the carrying amount.
Verified Answer
LS
Learning Objectives
- Familiarize yourself with the foundational elements and computations concerning bond issuance, specifically premiums, discounts, and the carrying amount.