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Assuming that a bond is originally issued at a discount, the carrying value of the bond...

Assuming that a bond is originally issued at a discount, the carrying value of the bond liability will decrease over the life of the bond. This statement is

True or False

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Answer- FALSE- If a bond is originally issued at a discount, the carrying value of the bond liability will decrease over the life of the bond.

Explanation- If a bond issued at a discount, the carrying/book value of bond liability will increase over the life of the bond.

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