The carrying value of the liability appearing on the 12/31/12 balance sheet will amount to:
A)$26,800
B)$29,200
C)$30,000
D)$29,600

Name: The carrying value of the liability appearing on the 12/31/12 balance sheet will amount to: A)$26,800 B)$29,200 C)$30,000 D)$29,600
Brand: Quizplus
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Question

Quizplus · Accepted Answer

$30,000 x 4% = $1,200 total discount; $1,200 - $400 amortization on 12/31/12 = $800 remaining discount; $30,000 notes payable - $800 discount on notes payable = $29,200 carrying value on 12/31/12.

The Carrying Value of the Liability Appearing on the 12/31/12