D. Debit to Discount on Bonds Payable for $3,000 On July 1, 2019, a company issued S200,000, 8-year, 4% bonds payable for S 186,944, when the market rate of interest was 5%. Interest payment dates are June 30 and December 31. Using the effective interest method of amortization, the December 31, 2019, carrying amount of the bonds (rounded to the closest dollar) will be: A. $186,270 B. $199,326 C. $187,618 D. $200,000 8. When a company uses the effective-interest method to amortize bond discount, A. Interest expense on each semi-annual interest payment date will be a constant 9. amount. B. Interest expense is calculated as principal x contract rate x 612. C. Interest expense will increase each period as the carrying amount of the bonds increases. D. Both B and C are correct. Which of the following is not a characteristic of a financing lease? A. The Lease transfers ownership of the asset to the lessor at the end of term. B. The Lease term is for the major part of the remaining economic life. C. The Lease grants the option, that the lessee is reasonably certain to exercise, for the 10. lessee to purchase the asset. D. All of the above are true