1. If bonds have been issued at a discount, over the life of the bonds, the

   	a.	carrying value of the bonds will decrease
   	b.	carrying value of the bonds will increase.
   	c.	unamortized discount will increase.
   	d.	interest expense will increase, if the discount is being amortized on a straight-line basis.

2. If the present value of lease payments equals or exceeds 90% of the fair value of the leased property, the

   	a.	conditions are met for the lease to be considered a capital lease.
   	b.	lease may be classified as an operating lease.
   	c.	recording of a lease liability is optionalthat is, the off-balance sheet approach can be elected
   	d.	lease is uneconomical and should not be entered into.