When the Straight-Line Method of Amortization Is Used for a Bond

Multiple Choice

When the straight-line method of amortization is used for a bond premium,the amount of interest expense for an interest period is calculated by

A) adding the amount of premium amortization for the period to the amount of cash paid for interest during the period.
B) deducting the amount of premium amortization for the period from the amount of cash paid for interest during the period.
C) multiplying the carrying value of the bonds by the effective interest rate.
D) multiplying the face value of the bonds by the face interest rate.