If bonds are initially sold at a discount and the straight-line method of depreciation is used, interest expense in the earlier years will be

Multiple Choice

• less than it would have been had the effective interest method of amortization been used.

• higher than it would have been had the effective interest method of amortization been used.

• less than the stated rate of interest.

• the same as it would have been had the effective interest method of amortization been used.