question 2 (5 points)\nwhich statement about bonds is false?\nbonds represent a liability of the…

question 2 (5 points)\nwhich statement about bonds is false?\nbonds represent a liability of the corporation.\nthe straight - line method is the simplest way to amortize a premium or discount.\na bondholder is a creditor of the corporation.\nthe carrying amount is determined by subtracting the premium from the maturity value.\nquestion 3 (5 points)

question 2 (5 points)\nwhich statement about bonds is false?\nbonds represent a liability of the corporation.\nthe straight - line method is the simplest way to amortize a premium or discount.\na bondholder is a creditor of the corporation.\nthe carrying amount is determined by subtracting the premium from the maturity value.\nquestion 3 (5 points)

Answer

Brief Explanations:

  1. Bonds are debt - securities issued by a corporation, so they represent a liability for the corporation and bondholders are creditors of the corporation.
  2. The straight - line method of amortizing bond premium or discount is indeed the simplest as it allocates the premium or discount evenly over the bond's life.
  3. When there is a bond premium, the carrying amount is determined by adding the premium to the maturity value, not subtracting.

Answer:

The carrying amount is determined by subtracting the premium from the maturity value.