Under the Effective-Interest Method of Amortization, the Amount of Discount

Multiple Choice

Under the effective-interest method of amortization, the amount of discount amortized each interest period is equal to the:

A) amount of interest expense less the cash paid.
B) amount of interest expense plus the cash paid.
C) face value of the bond times the stated interest rate.
D) face value of the bond times the market interest rate at the date of issue.