Atact Und Union 6 images at me & Overcossed 10-year bonds at a premium on January 1, 2020. The bonds pay annual interest each January 1. Olver.coshould use the effective interest method to amortize band premium, but the company mistakenly used the straight line method which of the following statement about the end of 2020 is correct? Choice 115 Ports 0. The book value of the bond is understated, the retained earnings are understated, and the interest payabu 's overstated, 8 The book value of the bond is understated, the retained earnings are overstated, and the interesi payable is understated O c The book value of the bond is overstated the retained earnings are overstated, and the interest payable is understated 0 0 The other four options are all incorrect O E The book value of the bond is overstated, the retained sarings are understated, and the interest payable is overstated