Parker Company Issued Ten-Year, 9%, Bonds Payable in 2020 at a Premium.During

Multiple Choice

Parker Company issued ten-year, 9%, bonds payable in 2020 at a premium.During 2020, the company's accountant failed to amortize any of the bond premium.The omission of the premium amortization will

A) not affect net income for 2020.
B) cause retained earnings at the end of 2020 to be overstated.
C) cause net income for 2020 to be overstated.
D) cause net income for 2020 to be understated.