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Each year, Pacific Enterprises (PE) prepares a reconciliation schedule that compares its income statement with its statement of cash flows. In its 2018 income statement,

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Each year, Pacific Enterprises (PE) prepares a reconciliation schedule that compares its income statement with its statement of cash flows. In its 2018 income statement, PE reported $11,000 of interest expense on its outstanding bonds. During the year, PE paid its regular installments of $9,000 of interest in cash. In its reconciliation schedule, PE should: O Show a $2,000 negative adjustment to net income under the indirect method for the decrease in bond premium O Show a $2,000 positive adjustment to net income under the indirect method for the decrease in bond premium O Show a $2,000 negative adjustment to net income under the indirect method for the decrease in bond discount O Show a $2,000 positive adjustment to net income under the indirect method for the decrease in bond discount

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