The Carrying Value of a Bond Issued at a Premium

The carrying value of a bond issued at a premium:

A) decreases by equal amounts each year if straight-line amortization is used.
B) decreases by equal amounts each year if effective interest amortization is used.
C) increases by equal amounts each year if straight-line amortization is used.
D) decreases by smaller and smaller amounts each year if straight-line amortization is useD.Straight-line depreciation of a bond premium decreases the premium by equal amounts each year. As the remaining premium balance decreases, so does the carrying value of the bond.