Question 8 If a company sells its 20-year bonds at a discount, how is the discount reported on the balance sheet? addition to the bonds payable deduction from bonds payable unearned liability accrued expense Question 9 Under the straight-line amortization method, interest expense on a bond sold at a discount is equal to the : interest rate times the face value of the bonds. interest paid minus bond discount amortization. O interest paid plus bond discount amortization. interest rate times the book value of the bonds