When bonds are sold at a discount, if the annual straight-line amortization amount is compared to the annual effective interest amortization amount over the life of the bond issue, the annual amount of the straight-line amortization of discount is:

• Higher than the effective interest amount every year.

• Higher than the effective interest amount in the early years and less than the effective interest amount in the later years.

• Less than the effective interest amount in the early years and more than the effective interest amount in the later years.

• Less than the effective interest amount every year.