The debenture carrying amount is the balance in the debenture payable account subtracted from or added to the balance in either the discount or premium account.

Question

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This statement is true. The carrying amount of a debenture is calculated by taking the balance in the debenture payable account and adjusting it by the balance in the discount or premium account, depending on whether the debenture was issued at a discount or premium.

The Debenture Carrying Amount Is the Balance in the Debenture