The Purchase of a Machine on Credit Was Recorded as a Debit

Multiple Choice

The purchase of a machine on credit was recorded as a debit to Machinery, a debit to Discount on note payable, and a credit to Notes payable. Under IFRS, at the end of the accounting period, any unamortized debit balance in the discount account should be reported as a(n) :

A) asset.
B) a direct reduction to the liability - without using a contra account.
C) expense.
D) liability.