If bonds are originally sold at a discount using the straight-line amortization method:
A) Interest expense in the earlier years of the bond's life will be less than the interest to be paid.
B) Interest expense in the earlier years of the bond's life will be the same as interest to be paid.
C) Unamortized discount is subtracted from the face value of the bond to determine its carrying value.
D) Unamortized discount is added to the face value of the bond to determine its carrying value.

Question

Quizplus · Accepted Answer

The Answer of If bonds are originally sold at a discount using the straight-line amortization method:
A) Interest expense in the earlier years of the bond's life will be less than the interest to be paid.
B) Interest expense in the earlier years of the bond's life will be the same as interest to be paid.
C) Unamortized discount is subtracted from the face value of the bond to determine its carrying value.
D) Unamortized discount is added to the face value of the bond to determine its carrying value.

If Bonds Are Originally Sold at a Discount Using the Straight-Line