Which of the following statements is false when a bond is issued at a premium?

• A.

  Cash coupon interest payments exceeds the interest expense.

• B.

  None of the above statements is false.

• C.

  The book value of the bond liability decreases over the life of the bond.

• D.

  Bonds payable will be credited for the face value of the bond.

• E.

  The proceeds from the bond issue exceeds the face value.