Read each statement? below, indicate if it is true or? false, and give a brief e

Question

Read each statement? below, indicate if it is true or? false, and give a brief explanation of your answer.

5. The amortization of the discount on a bond payable results in additional interest expense recorded over the life of the bond O A. the discount is amortized to interest expense over the life of the bond, but the discount actually decreases the interest expense that has to be paid because the bond's contract rate was more than the market rate on the bond issue date date the discount s amortized to Interest expense over the l e ot the bond ?C. but the discount actually decreases the interest expense that has to be pala because the bond's contract rate was less than the market rate on the bond ue date. the discount s amortize d to interest expense over the life of the bond, the discount is actually additional interest expense that has to be paid because the bond's contract rate was more than the market rate on the bond issue date O D contract ra

Explanation / Answer

True, the discount is amortized to interest expense over the life of the bond, the discount is actually additional interest expense that has to be paid because the bond's contact rate was less than the market rate on the bond issue date

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