Discussion Question #3 Effective Interest Method versus Straight Line Method

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Discussion Question #3

Effective Interest Method versus Straight-Line Method

Will the bond interest expense reported in 2017
under effective interest method be the same
as, greater than, or less than the amount that
would be reported if the SL method of
amortization were used?
Will the total bond interest expense for the life of
the bond under effective interest method be
the same as, greater than, or less than the
total interest expense if the SL method of
amortization were used?
14-33

LO 4

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