Under the Effective-Interest Method of Amortization, Interest Expense Each Period

question 107

Multiple Choice

Under the effective-interest method of amortization, interest expense each period can be calculated by multiplying the:

• A)carrying value of the bonds times the effective-interest rate for the appropriate time period.
• B)carrying value of the bonds times the stated interest rate for the appropriate time period.
• C)face value of the bonds times the stated interest rate for the appropriate time period.
• D)face value of the bonds times the effective-interest rate for the appropriate time period.

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