)9 Using straight-line method show how6 Help Seve& Exit Submit 5 Part 5 of 6 On January 1. Year 1 Residence in a 4% premium. They had a 20 year term and a stated rate of straight-line basis. Which of the following shows how the recognition of interest expense will affect Residence's financial Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting interest of 7% The company amortizes the premium on a statements on December 31, Year 1? Balance sheet Carrying Value Income Statement cash r Statement of Cash Flows Assets Bond LiabilityEquityRev 3,400) - Exp. Net Inc. ,400 3,400 A ( (3,480) 3,500 3,400) (100) NA 100 3,400 (3.500 (3,500) NA (3,400) OA Prex 5 6 or 6 Next >