Under the effective-interest method of amortization,the amount of discount amortized each interest period is equal to the:

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Under the effective-interest method of amortization, the amount of discount amortized each interest period is equal to the amount of interest expense less the cash paid. This is because the amortization of the discount increases the amount of interest expense recognized in each period, while the cash paid reduces the net amount of interest expense recognized. Therefore, the amount of discount amortized is the difference between the interest expense and cash paid.

Under the Effective-Interest Method of Amortization,the Amount of Discount Amortized