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professor190 [17]
4 years ago
13

A discount on bonds should be reported in the balance sheet:________.

Business
1 answer:
Ann [662]4 years ago
3 0

Answer: As a reduction of the face amount of the bond.

Explanation:

Bond discount is the amount through which the market price of bonds are lower than its principal amount when it is due at maturity.

The primary characteristics of a bond are its face value, coupon rate and market price. When there is a discount on bonds, while reporting it in the balance sheet, it should be as a decrease of the face amount value of the bond.

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