How would the carrying value of bonds payable change over time for bonds issued at a discount and for bonds issued at a premium?
A) Decrease for bonds issued at a discount and decrease for bonds issued at a premium.
B) Decrease for bonds issued at a discount and increase for bonds issued at a premium.
C) Increase for bonds issued at a discount and decrease for bonds issued at a premium.
D) Increase for bonds issued at a discount and increase for bonds issued at a premium.
Answer: C
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