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Straight-Line Interest Amortization of a Premium or Discount on Bonds

Question 98

Multiple Choice

Straight-line interest amortization of a premium or discount on bonds payable:


A) assigns variable amounts of interest over the term of the liability.
B) uses compound interest principles.
C) assigns the same amount of interest to each interest period over the term of the liability.
D) is required for U.S.income tax reporting.

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