Which statement is true? The carrying amount of the bonds will decrease each year if the bonds were issued at a discount. Total interest expense will increase each year if the bonds are issued at a discount and the straight-line method of amortization is used. x Total interest expense will increase each year if the bonds are issued at a premium and the effective interest method of amortization is used. The carrying amount of the bonds will decrease each year if the bonds were issued at a premium. Which of the following statements is true? Total interest expense will increase each year if the bonds are issued at a discount and the straight-line method of amortization is used. The carrying amount of the bonds will increase each year if the bonds were issued at a premium. Total interest expense will increase each year if the bonds are issued at a premium and the effective interest method of amortization is used. X The carrying amount of the bonds will increase each year if the bonds were issued at a discount. Bond issue costs should be subtracted from bonds payable on the balance sheet. should be included in bond discount or subtracted from bond premium and amortized by the effective interest method. X should not be amortized and should be written off at bond retirement. should be amortized by the straight-line method to interest expense. Shares of capital stock Issued to and held by shareholders as of a specific date are Issued Capital Stock Outstanding Capital Stock Authorized Capital Stock Yes Yes No Yes Yes No Yes Yes 4 IV. NO NO OOOO