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The interest rate at which an acquired company issued its long-term bonds payable is higher than the current market rate. The bonds have a four-year
The interest rate at which an acquired company issued its long-term bonds payable is higher than the current market rate. The bonds have a four-year remaining life at the date of acquisition. Which statement is true concerning the write-off of revaluation of these bonds in the fourth year after acquisition (elimination O)?
a. Interest expense will increase
b. Bonds payable will increase
c. Interest expense will decrease
d. No elimination (O) is needed
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