Which of the following statements does not correctly describe the accounting for bonds that were issued at a discount? 4 Multiple Choice The interest expense over the life of the bond exceeds the total cash interest payments. The interest expense over the life of the bonds increases as the bonds mature when the effective interest method is used. The amortization of the discount on bonds payable account decreases as the bonds mature when the effective interest method is used. The book value of the bond liability increases when interest payments are made on the due dates when the effective interest method of amortization is used. 14 Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2019. Alden financed $37,908,000, and the note agreement will require $10 million in annual payments starting on December 31, 2019 and continuing for a total of four more years (final payment December 31, 2023). Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually After the first payment was made, the note payable liability on December 31, 2019 is closest to: Multiple Choice $32,908,000 $31,698,800 o o o o $40,000,000 $27,908.CO