1. Which of the following statement is correct?

1. Amortization of discount on bonds payable (bond discount) results in an increase in a bonds carrying value
2. Amortization of premium on bonds payable (bond premium) results in an increase in bond interest expense.
3. Amortization of discount on bonds payable (bond discount) results in a decrease in bond interest expense.
4. Amortization of premium on bonds payable (bond premium) results in an increase in a bonds carrying value.