Discount on bonds is an additional cost of borrowing and should be recorded as A) True B) False The process of determining the present value is referred to as discounting the future amount. A) True B) False Bonds are a form of interest-bearing notes payable. A) True False Knollwood Corp. issued $300,000 of 30-year, 8 percent bonds at 106 on one of its semiannual interest dates. The straight-line method of is to be used. What is the total amount of INTEREST EXPENSE. Knollwood Corp. will record over the life of the bonds? A) $719, 500 B) $702,000 C) $720,000 D) $738,000 Bonds that can be converted into company stock at the bondholder's option are A) unsecured bonds. B) convertible bonds. C) mortgage bonds. D) callable bonds