QUESTION 7 7. On January 2, 2015, Strong Co. issued 8% bonds with a face amount of $1,000,000 that mature on January 2, 2021. The bonds were issued to yield approximately 12%, resulting in a discount of $150,000. Strong incorrectly used the straight-line method instead of the effective interest method to amortize the discount. How is the carrying amount of the bonds affected by the error? At December 31, 2015 At January 2, 2021