Which of the following statements is not correct regarding amortization when using the effective interest method (basis)?

• Amortization of discount on bonds payable (bond discount) results in an increase in interest expense and in an increase in the bonds carrying value.

• Amortization of discount on bonds payable (bond discount) increases in later years relative to earlier years of a bonds life.

• Amortization of both premium on bonds payable (bond premium) and discount on bonds payable (bond discount) decreases in later years relative to earlier years of a bonds life.