Under the Effective-Interest Method of Amortization,the Amount of Discount Amortized

question 140

Multiple Choice

Under the effective-interest method of amortization,the amount of discount amortized each interest period is equal to

• A)the amount of interest expense plus the cash paid for interest.
• B)the amount of interest expense less the cash paid for interest.
• C)the total discount divided by the number of interest payments to be made.
• D)the total amount of interest expense divided by the number of interest payments to be made.
• E)the amount of the decrease from the cash payment.

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