Question: How does a company account for the difference between interest expense and the cash payment of interest when bonds are issued at less than their

How does a company account for the difference between interest expense and the cash payment of interest when bonds are issued at less than their face value? Please provide your answer in the rich text box.

A The difference is accounted for using Amortization of Bond Discount.

B The difference is accounting for using Amortization of Bond Premium.

C In this situation the cash payment of interest will exceed interest expense.

D None of the above answers are correct.

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