Regarding Bond Investments That Are Reported by the Amortized Cost

Multiple Choice

Regarding bond investments that are reported by the amortized cost method, which of the following statements is INCORRECT?

A) Whenever there is an issue premium or discount, it is amortized by adjusting the carrying value of the bond upward or downward toward its par or face value.
B) On the maturity date of the bonds, the carrying value will equal the face value.
C) On each interest payment date, as interest revenue is recorded, the premium on bonds will be amortized, reducing the amount of interest revenue and gradually reducing the carrying value of the bonds.
D) Whenever there is an issue premium or discount, interest revenue equals the amount of cash received.