Discount on debentures payable is considered to be additional interest expense of the company that issues the debenture.

Question

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Discount on debentures payable represents the difference between the face value of the debenture and the amount of cash the company received when issuing the debenture. This discount is amortized over the life of the debenture and is considered to be an additional interest expense for the company issuing the debenture.

Discount on Debentures Payable Is Considered to Be Additional Interest