If a Bond Payable Is Sold (Issued) at a Premium

Multiple Choice

If a bond payable is sold (issued) at a premium, the amount of the carrying value (the long-term liability) reported on the subsequent statements of financial position does which of the following?

A) Increases each year.
B) Changes from year to year depending upon the market rate of interest each year.
C) Remains constant.
D) Decreases each year.