The difference between the face value and the selling price of a 10-year discounted bond sold two years after authorization, is amortized for

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The difference between the face value and selling price of a 10-year discounted bond sold two years after authorization is the discount that the bond was sold at. Since the bond has already been sold, the discount is already reflected in the selling price. Therefore, the discount is amortized over the remaining life of the bond, which is 8 years (10 - 2). This means that the discount is spread out evenly over the 8-year period until the bond matures.

The Difference Between the Face Value and the Selling Price