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Which statements is true about the carrying value of bonds

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Question 1: On January 2, 2017, Wynn Corporation sold $750,000 of bonds for $745,000. The bonds will mature in ten years and pay interest annually on December 31. Wynn properly recorded the payment of interest and amortization of the discount using the effective interest method. Which of the following statements is true about the carrying value of the bonds and/or the unamortized discount at the end of 2017?

Group of answer choices

Option 1: The unamortized premium will be less than $5,000.

Option 2: The carrying value will be less than $745,000.

Option 3: The carrying value will be greater than $745,000.

Option 4: The carrying value will be $745,000.

Reference no: EM132558330

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