question content area when the bonds are sold for more than their face value, the carrying amount of the bonds is equal to a.face value plus the unamortized premium b.face value plus the unamortized discount c.face value d.face value minus the unamortized premium

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24-11-2022
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question content area when the bonds are sold for more than their face value, the carrying amount of the bonds is equal to a.face value plus the unamortized premium b.face value plus the unamortized discount c.face value d.face value minus the unamortized premium

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KanakKhatana KanakKhatana · Answer 1 · 2022-12-02T11:21:26+01:00

When the bonds are sold for more than their face value, the carrying amount of the bonds is equal to face value plus the unamortized premium.

What is the carrying value of the bonds when they are sold for more than their face value?

Bond Premium, which occurs when a bond is sold for more than its face value, is the difference between the sale price and the bond's value. The corporation will, however, get more money than the bond's face value if the market interest rate is lower than 9% at the time the bond is issued.

The premium on bonds payable, bond premium, or premium is the amount paid for the bond (exclusive of interest that has already accrued) above its face value.

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