Question: We discussed two methods for amortizing bond premium and bond discounts. One was the effective interest method and one was the straight - line method.

We discussed two methods for amortizing bond premium and bond discounts.

We discussed two methods for amortizing bond premium and bond discounts. One was the effective interest method and one was the straight-line method. Explain why the straight-line method is considered theoretically unsound and is not recommended by FASB.
In some circumstances, corporations will buy back their own stock - called Treasury Stock. Identify three reasons why a company may choose to do so.
One was the effective interest method and one was the straight-line method.

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