Straight-Line Amortization of Bond Premium or Discount

Straight-line amortization of bond premium or discount:

A) is appropriate for deep discount bonds.
B) is appropriate when the bond term is especially long.
C) Provides the same total amount of interest expense and interest revenue as the effective interest method over the life of the bonds.
D) Provides the same amounts of interest expense and interest revenue each interest period as the effective interest method.
E) Can be used as an optional method of amortization in all situations.

Correct Answer:

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