Premium on Bonds Payable.

a. has a debit balance.
b. is a contra account.
c. is considered to be a reduction in the cost of borrowing.
d. is deducted from bonds payable on the balance sheet.

c. is considered to be a reduction in the cost of borrowing.

Explanation:

The premium on bond payable arise when the bond payable is issued more than the face value. It is a liability account consist of the credit balance that is presented on the liability side of the balance sheet

Moreover, it is deducted in the borrowing cost and amortized as an interest expense to the bonds life. It is added to the bond payable

Hence, the correct answer is c.

     he is from the america

Explanation:

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