Using Straight-Line Amortization,when a Bond Is Sold at a Premium

question 231

Multiple Choice

Using straight-line amortization,when a bond is sold at a premium:

• A)the amortized premium is added to the interest payable to calculate interest expense.
• B)Bonds Payable rises by a constant amount each year.
• C)interest expense is calculated by subtracting the amortized premium from the interest payment that is to be made.
• D)interest expense rises each year.

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