When the Bonds Are Sold for More Than Their Face

question 126

Multiple Choice

When the bonds are sold for more than their face value, the carrying value of the bonds is equal to

• A) face value
• B) face value plus the unamortized discount
• C) face value minus the unamortized premium
• D) face value plus the unamortized premium

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Definitions:

Legitimate Power

is a type of authority that is recognized and accepted by members of an organization, stemming from a formal position or role.

Formal Authority

The power or right to give orders, make decisions, and enforce obedience, typically within an organizational hierarchy.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Coercive Power

The ability of a person to compel or force someone else to act in a certain way through threats, punishment, or control measures.