what-is-the-long-term-effect-of-amortizing-a-discount-on-the-carrying-value-of-b

Question

What is the long-term effect of amortizing a discount on the carrying value of bonds payable?

Accepted Answer

The carrying value of bonds payable increases to the face value by maturity.

Answer

Amortizing the discount reduces the carrying value below the face value.

Answer

The carrying value of bonds payable decreases to zero by maturity.

Answer

The carrying value of bonds payable remains unchanged.