Question 6:

PVB-0054

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A 15-year bond was issued in year 1 at a discount. The fair value option was not elected to value financial liabilities. During year 10 a 10-year bond was issued at face amount with the proceeds used to retire the 15-year bond at its face amount. The net effect of the year 10 bond transactions was to increase long-term liabilities by the excess of the 10-year bonds face amount over the 15-year bonds.

	Face amount.
	Carrying amount.
	Face amount less the deferred loss on bond retirement.
	Carrying amount less the deferred loss on bond retirement.