Question: Which one of the following is a true statement for a firm electing the fair value option for valuing its bonds payable? a. The effective

Which one of the following is a true statement for a firm electing the fair value option for valuing its bonds payable?

a. The effective interest method of amortization must be used to calculate interest expense.

b. Discount or premium is disclosed in the notes to the financial statements.

c. The fair value of the bond and the principal obligation value must be disclosed.

d. If the fair value option is elected, it must be applied to all bonds.

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