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

Multiple Choice

If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will be

A) higher than it would have been had the effective-interest method of amortization been used.
B) less than it would have been had the effective-interest method of amortization been used.
C) the same as it would have been had the effective-interest method of amortization been used.
D) less than the stated rate of interest.