Ch. 13_ED - maturity of the bond, he still owes that...

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Ethical Dilemma While the client is a big part of the success of the company, he is asking you to violate basic GAAP rules. If you would write the unamortized premium in paid-in capital, it would understate liabilities, because while he will end up paying the balance at the
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Unformatted text preview: maturity of the bond, he still owes that balance today. In this case, I would have to ask the client to either follow GAAP, or to take his business elsewhere after explaining the premium is not paid-in capital per se....
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This note was uploaded on 04/09/2008 for the course ACCT 042 taught by Professor Turlow during the Fall '07 term at Drake University .

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