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Premiums or Discounts Associated with Available-For-Sale Debt Securities Are

Question 27

Multiple Choice

Premiums or discounts associated with available-for-sale debt securities are


A) usually not amortized because the effect of the amortization would usually be immaterial
B) amortized to interest revenue over the life of the investment
C) usually recorded in separate accounts at the time the bonds are acquired
D) not treated like premiums or discounts on bonds held to maturity

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