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When bonds have been issued at a premium, the periodic amortization of the premium will A) increase the carrying value of the bonds. B) have no effect on the carrying value of the bonds. C) decrease the
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When bonds have been issued at a premium, the periodic amortization of the premium will A) increase the carrying value of the bonds. B) have no effect on the carrying value of the bonds. C) decrease the carrying value of the bonds. D) cause the carrying value always to equal the face value of the bonds ) None of the above accunulated depreciation of $60, 000 in the Bagley rship

User Lorenzo Pistone
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Answer:

C) decrease the carrying value of the bonds.

Step-by-step explanation:

We calculate the bond premium by subtracting the face value of the bond from the paid amount for it. Then, we have to figure out how many months are left before the bond matures and divide the bond premium by the number of months remaining and this tells us how much to amortize on a monthly basis.

User Alex Shkor
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