If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will be

Question

Quizplus · Accepted Answer

Under the straight-line method, the same amount of discount is amortized each period, leading to higher interest expense in the earlier years compared to the effective-interest method, which amortizes more discount in the earlier periods.

If Bonds Are Initially Sold at a Discount and the Straight-Line