On July 1, Year 7, Dean Co. issued, at a premium, bonds with a due date of July 1, Year 12. Dean incorrectly used the straight- line method instead of the effective interest method to amortize the premium. How were the following amounts affected by the error at June 30, Year 12? Bond O A. Overstated B. C. carrying amount O D. Understated Overstated No effect Retained earnings Understated Overstated No effect No effect