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Circle the one best answer. Circle the correct one 1. The amortization of premium on bonds payable a. will increase bond interest expense. should...

Circle the one best answer. Circle the correct one
1. The amortization of premium on bonds payable
a. will increase bond interest expense.
b. should take place over a period not to exceed 40 years.
c. will decrease bond interest expense.
d. will increase bond interest revenue.
2. A corporation issued $600,000 of 8%, 5-year bonds on January 1, at 102. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization, the amount of bond interest expense to be recognized on July 1 is
a. $48,000.
b. $24,000.
c. $25,200.
d. $22,800

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