If bonds are initially sold at a discount and the straight-line method of depreciation is used, interest expense in the earlier years will be
A) less than it would have been had the effective interest method of amortization been used.
B) higher than it would have been had the effective interest method of amortization been used.
C) less than the stated rate of interest.
D) the same as it would have been had the effective interest method of amortization been used.

Question

Quizplus · Accepted Answer

The Answer of If bonds are initially sold at a discount and the straight-line method of depreciation is used, interest expense in the earlier years will be
A) less than it would have been had the effective interest method of amortization been used.
B) higher than it would have been had the effective interest method of amortization been used.
C) less than the stated rate of interest.
D) the same as it would have been had the effective interest method of amortization been used.

If Bonds Are Initially Sold at a Discount and the Straight-Line