Premium on Bonds Video Lessons

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Problem: When the premium on bonds is amortized, the amount of recognized interest expense is A) greater than the amount of cash paid for interest. B) equal to the amount of cash paid for interest. C) equal to the amount of cash paid for interest less the amount of premium amortization. D) equal to the premium amortization recognized and recorded.

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Problem Details

When the premium on bonds is amortized, the amount of recognized interest expense is

A) greater than the amount of cash paid for interest.

B) equal to the amount of cash paid for interest.

C) equal to the amount of cash paid for interest less the amount of premium amortization.

D) equal to the premium amortization recognized and recorded.

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Based on our data, we think this problem is relevant for Professor Buckless' class at NCSU.