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A Bond Investment Is Made at a Premium Over Face

Question 18

Multiple Choice

A bond investment is made at a premium over face value. Amortization of that premium will cause Bond Interest Revenue to


A) increase and Bond Discount to decrease.
B) increase and Investment in Bonds to decrease.
C) increase and Investment in Bonds to increase.
D) decrease and Investment in Bonds to decrease.
E) decrease and Investment in Bonds to increase.

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