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AB Sold Its 10-Year Bond at a Discount

Question 62

Multiple Choice

AB sold its 10-year bond at a discount.In reporting the bonds and the related discount on a balance sheet shortly thereafter, the discount should be:

A) Deducted from the bonds payable.
B) Added to the bonds.
C) Reported as a deferred charge.
D) Recorded as expense in the period of sale.

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