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When a corporation that is not a financial institution holds bonds of another company that...

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Question

Accounting

When a corporation that is not a financial institution holds bonds of another company that were issued at a discount, interest is recognized ________.

Choose the correct answer.

A.

on accrual basis, using the stated interest rate

B.

on accrual basis, using straight line amortization

C.

on accrual basis, using the effective interest method

D.

on a cash basis

Answer & Explanation Solved by verified expert
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