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Question 4: Choose "true" or "false" as applicable for the following items as they pertain to bonds issued at a premium.
a. On the date of issuance, the net book value of the bonds payable will be higher than face value.
[ Choose ] False True
b. Upon maturity, the net book value of the bonds payable will equal face value.
[ Choose ] False True
c. As the premium is amortized each interest period, a reduction to interest expense will be recorded.
[ Choose ] False True
d. As the premium is amortized each interest period, the net book value of the bonds payable will decrease.
[ Choose ] False True
e. The amortization of the premium each interest period impacts the amount of cash paid each interest period.
[ Choose ] False True
f. The premium on bonds payable ledger account is a contra liability account.
[ Choose ] False True
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