The result of using the effective interest method of amortization for bond discounts is that the

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The result of using the effective interest method of amortization for bond discounts is that the interest expense for each amortization period increases. This is because the effective interest method involves applying a constant interest rate to the carrying amount of the bond at the beginning of each period, which increases as the discount is amortized.
To clarify, here are the statements with the correct answer:
a. Interest expense for each amortization period is constant.
This statement is incorrect. Under the effective interest method, the interest expense will change each period because it is calculated based on the carrying amount of the bond, which increases as the discount is amortized.
b. Effective interest rate for each amortization period is constant.
This statement is correct. The effective interest rate remains the same throughout the life of the bond.
c. Amount of interest expense decreases each period.
This statement is incorrect. The amount of interest expense actually increases each period because the carrying amount of the bond increases as the discount is amortized.
d. Cash interest payment is greater than the interest expense.
This statement is incorrect. In the case of a bond issued at a discount, the cash interest payment is less than the interest expense. The interest expense includes the cash payment plus the amortization of the discount.
Therefore, the correct answer is that the effective interest rate for each amortization period is constant (b). The interest expense recorded on the income statement each period increases as the bond's carrying value approaches its face value over the term of the bond.

The Result of Using the Effective Interest Method of Amortization