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Question
Which of the following statements is correct?
A. Amortization of discount on bonds payable (bond discount) results in an increase in a bond's carrying value.
B. Amortization of discount on bonds payable (bond discount) results in a decrease in bond interest expense.
C. Amortization of premium on bonds payable (bond premium) results in an increase in a bond's carrying value.
D. Amortization of premium on bonds payable (bond premium) results in an increase in bond interest expense.
Answer
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