In Its 2016 Income Statement,WME Reported $11,000 of Interest Expense

Multiple Choice

In its 2016 income statement,WME reported $11,000 of interest expense on its outstanding bonds.During the year,WME paid its regular installments of $9,000 of interest in cash.In its reconciliation schedule,WME should:

A) Show a $2,000 positive adjustment to net income under the indirect method for the decrease in bond premium.
B) Show a $2,000 negative adjustment to net income under the indirect method for the decrease in bond premium.
C) Show a $2,000 positive adjustment to net income under the indirect method for the decrease in bond discount.
D) Show a $2,000 negative adjustment to net income under the indirect method for the decrease in bond discount.