$3$

$3$ points

On January $1,$ Year $1,$ Booker Corporation issued a $$5,000$ face value bond that sold for $90.$ The bond had a five$-$year term and paid $10\%$ annual interest. The company used the proceeds from the bond issue to buy land. The land was leased for $$600$ of cash revenue per year and was sold at the end of the $5$ th year for $$4,200$ cash. The straight$-$line method of amortization is used. Interest expense reported on the income statement over the life of the bond would

increase by $$100$ each year.

be the same each year.

decrease by $$100$ each year.

equal the stated rate of interest.