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The Hammer Corporation shows the following balance sheet presentation for the carrying value of bonds payable: Bonds payable $1.000.000 Less: Discount on bonds payable_195.000) $
The Hammer Corporation shows the following balance sheet presentation for the carrying value of bonds payable: Bonds payable $1.000.000 Less: Discount on bonds payable_195.000) $ 905,000 Which statement below is correct? The $905,000 represents the amount that bondholders will be paid back when the bonds mature The $95,000 is primarily related to the bond being a higher risk of default. The $95,000 represents the amount that was paid to bondholders when the bonds were issued. The $95,000 eventually will be amortized down to zero at the maturity date of the bonds
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