How is the premium or discount on held-to-maturity bond investments presented on the balance sheet?
A) as a part of the cost of the investment and amortized over a period not to exceed five years
B) as a part of the cost of the investment and amortized over the remaining life of the bonds
C) in a separate account that is reported separately from the bonds and amortized over a period not to exceed five years
D) in a separate account that is reported separately from the investment account and not amortized
Correct Answer:
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