Pace Company Issued at 97 Bonds with a Face Value

Multiple Choice

Pace Company issued at 97 bonds with a face value of $200,000.As a result of the issue:

A) Assets and liabilities would both increase by $200,000.
B) Assets and liabilities would both increase by $194,000.
C) Assets would increase by $194,000 and liabilities would increase by $200,000.
D) Assets would increase by $200,000,and liabilities would increase by $194,000.