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NeTakaya
3 years ago
10

A bond discount must be amortized using the effective-interest method if it yields annual amounts that are materially different

than the straight-line method. be amortized using the straight-line method if it yields annual amounts that are materially different than the effective-interest method. always be amortized using straight-line amortization. always be amortized using the effective-interest method.
Business
1 answer:
Naddika [18.5K]3 years ago
5 0

Answer:

A bond discount must:

always be amortized using the effective-interest method.

Explanation:

The effective interest method is the accepted accounting standard used to amortize bond discounts. It is also preferred by investors and analysts who want to determine the actual interest earned on the bonds.  It is more logical than the straight-line method.  Therefore, it must always be used, except for the simplicity offered by the straight-line method.

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Parkway Distributors is a wholesale firm that employs several outside salespersons. Emily, a salesperson employed by Parkway Dis
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Legal obligation will arise from inadvertence of one thing or a deliberate act. There are 3 categories of erroneous conduct lawfully. Its fissure of agreement, corruption and one who is pretentious or abraded thanks to the act of additional person.

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4 years ago
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 40 million, $1 par, common shares, to b
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Answer:

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a) Journal Entry:

A memo entry to show that there is a 2-for-1 split only with new par value of $0.50 for 80 million shares.

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Explanation:

a) Data and Calculations:

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