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Marrrta [24]
3 years ago
12

The balance in Unamortized Discount on Bonds Payable

Business
1 answer:
Irina-Kira [14]3 years ago
4 0

Answer:

Correct option is (a)

Explanation:

Any difference in the amount of par value of bond and the cost at which it was acquired. The organization can either choose to expense the discount or held the same as an asset that is amortized over the years till maturity of bond.

Unamortized discount is the amount that is not yet expensed. The same is reported on the balance sheet as a deduction from face value of bond.

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