Which of the following is true with regards to the accrued interest on bonds payable that are

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Question:

Which of the following is true with regards to the accrued interest on bonds payable that are sold between interest dates?

Group of answer choices

The accrued interest is computed using the effective rate
The accrued interest is extra income to the buyer and treated as bond issue cost of the buyer
The accrued interest will be paid to the seller when the bonds mature
The accrued interest is added to the issue price of the bond to determine the total cash proceeds from bond issuance