Craddock Company issued 6%, 10-year bonds with a face amount of $1,000,000 for $1,020,000. The bonds pay interest semi-annually on June 30 and December 31 of each year. The semi-annual straight-line amortization of the premium on bonds payable will
A. increase interest expense by $20,000
B. not impact interest expense or the carrying value of the bond
C. decrease interest expense by $1,000
D. decrease interest expense by $1,000
Ans: C. decrease interest expense by $1,000
Business
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