When the bonds are sold for more than their face value, the carrying value of the bonds is equal to
A) face value
B) face value plus the unamortized discount
C) face value minus the unamortized premium
D) face value plus the unamortized premium

Question

Quizplus · Accepted Answer

When bonds are sold for more than their face value, they are said to be sold at a premium. The unamortized premium refers to the portion of the premium that has not yet been accounted for in the bonds' carrying value. Therefore, the carrying value of the bonds would be the face value plus the unamortized premium.

When the Bonds Are Sold for More Than Their Face