Comment on the change in both the carrying value and the balance of the Unamortized Bond Discount account over the life of a bond issue
The carrying value starts out lower than the face value when bonds are issued at a discount. Over the life of the bonds, carrying value increases and eventually equals the face value at the end of the bond term. The balance in the Unamortized Bond Discount account represents an amount that will be allocated to increase interest expense. Over the bond term, its balance is systematically reduced and will be zero at the end of the bond term.
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