When a bond sells at a discount, the carrying value $\_\_\_\_\_\_\_\_$ after each amortization entry.

$-$Increases

$-$Depends on the median selling price of similar bonds

$-$Decreases

$-$Is not affected

The difference between equity financing and debt financing is that$\_\_\_\_\_\_\_.$

$-$equity financing involves borrowing money.

$-$equity financing involves selling part of the company.

$-$debt financing means the company has no debt.

$-$debt financing involves selling part of the company.

Naval Inc. issued $$20,000,000$ face value bonds at a premium and received $$21,450,000.$ At the end of $2019,$ the balance in the Premium on Bonds Payable account is $$556,000.$ This year$$s balance sheet will show a net liability of $\_\_\_\_\_\_\_\_.$

$-$$$21,450,000$

$-$$$19,444,000$

$-$$$20,556,000$

$-$$$20,000,000$