Question: Assume the fair value option is not elected for these securities. The investors carrying value at the end of the first year would be highest

Assume the fair value option is not elected for these securities. The investor’s carrying value at the end of the first year would be highest if the bond was purchased at a

a. Discount and amortized by the straight-line method.

b. Discount and amortized by the effective interest method.

c. Premium and amortized by the straight-line method.

d. Premium and amortized by the effective interest method.

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