Any unamortized premium should be reported on the balance sheet of the issuing corporation as

A) a direct deduction from the face amount of the bonds in the liabilities section
B) as paid-in capital
C) a direct deduction from retained earnings
D) an addition to the face amount of the bonds in the liabilities section

Any unamortized premium should be reported on the balance sheet of the issuing corporation as an addition to the face amount of the bonds in the liabilities section. This is because the premium represents the excess of the stated or face amount of the bonds over their fair value, and is therefore considered a liability that increases the total amount owed to bondholders.