How Would the Carrying Value of Bonds Payable Change Over

question 85

Multiple Choice

How would the carrying value of bonds payable change over time for bonds issued at a discount and for bonds issued at a premium?

• A)Decrease for bonds issued at a discount and decrease for bonds issued at a premium.
• B)Decrease for bonds issued at a discount and increase for bonds issued at a premium.
• C)Increase for bonds issued at a discount and decrease for bonds issued at a premium.

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Definitions:

Easement in Gross

A legal right to use another person's land for a specific, limited purpose, which is not tied to any particular piece of property.

Personal

Relating to or concerning individuals rather than groups or companies; not related to business or official matters.

Owner

The person or entity that has legal title, possession, or control over property, assets, or goods, and has the right to use, manage, and dispose of them.

Concurrent Property Ownership

Refers to a situation where two or more parties hold ownership rights in a single piece of property simultaneously.