If Bonds Are Originally Sold at a Discount Using the Straight-Line

question 65

Multiple Choice

If bonds are originally sold at a discount using the straight-line amortization method,

• A)interest expense in the earlier years of the bond's life will be less than the interest to be paid.
• B)interest expense in the earlier years of the bond's life will be the same as interest to be paid.
• C)unamortized discount is subtracted from the face value of the bond to determine its carrying value.
• D)unamortized discount is added to the face value of the bond to determine its carrying value.

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