Which of the following is true of a Premium on Bonds Payable account?

a. It is added to the Bonds Payable balance and shown with long-term liabilities on the balance sheet.

b. It is added to the Bonds Payable balance and shown with stockholders' equity on the balance sheet.

c. It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet.

d. It is subtracted from the Bonds Payable balance and shown with the current liabilities on the balance sheet.