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Using the Straight-Line Amortization Method, If Bonds Are Sold at a Discount

Question 155

Multiple Choice

Using the straight-line amortization method, if bonds are sold at a discount:


A) interest expense in the beginning of the bond's life will be less than interest expense at the end of the bond's life.
B) interest expense in the beginning of the bond's life will be more than interest expense at the end of the bond's life.
C) unamortized discount is subtracted from the face value of the face value of the bond to determine its carrying value.
D) unamortized discount is added to the face value of the bond to determine its carrying value.

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