Question: When a bond payable is issued at a premium, subsequent amortization of the premium does which of the following? A. Decreases the book value of

When a bond payable is issued at a premium, subsequent amortization of the premium does which of the following?

A. Decreases the book value of the bonds.

B. The amount of amortization would be added to net income to arrive at cash flows from operating activities.

C. When the effective-interest method is used, the amount of amortization would decrease for each year the bond approaches maturity.

D. Increases interest expense.

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