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If Bonds Are Originally Sold at a Discount Which Is

Question 13

Multiple Choice

If bonds are originally sold at a discount which is amortized using the straight-line method,


A) the interest expense in the earlier years of the bond's life will be less than the interest to be paid.
B) the interest expense in the earlier years of the bond's life will be the same as the interest to be paid.
C) the unamortized discount will be subtracted from the face value of the bond to determine its carrying value.
D) The unamortized discount will be added to the face value of the bond to determine its carrying value.

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