Which One of the Following Statements About Amortization of Discounts

Multiple Choice

Which one of the following statements about amortization of discounts and premiums is not correct?

A) Under straight-line amortization,when a bond is sold at a premium,the annual premium amortization is the total premium divided by the number of years until bond maturity.
B) When a bond is sold at a discount,interest expense recorded using the effective-interest method is less than the interest paid on the bond.
C) The effective-interest method of amortization is considered to be conceptually superior to straight-line amortization.
D) When a bond discount is amortized using the effective-interest method,the promised interest payment is less than the interest expense,so the bond liability will increase as a result of the contra-liability account decreasing.