There Are Three Steps Required to Calculate Amortization Using the Effective

question 36

Multiple Choice

There are three steps required to calculate amortization using the effective interest method. Which one of the following is NOT a required step?

• A) Calculate interest expense on the carrying amount of the bonds.
• B) Calculate interest expense on the fair value of the bonds.
• C) Calculate bond interest paid.
• D) Calculate the amortization amount.

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