Which of the Following Is TRUE of a Discount on Debentures

Multiple Choice

Which of the following is TRUE of a discount on debentures payable?

A) A discount on debentures payable is added to the debentures payable balance and shown with non- current liabilities on the balance sheet.
B) A discount on debentures payable is subtracted from the debentures payable balance and shown with the current liabilities on the balance sheet.
C) A discount on debentures payable is subtracted from the debentures payable balance and shown with non- current liabilities on the balance sheet.
D) A discount on debentures payable is added to the debentures payable balance and shown with owners' equity on the balance sheet.