Interest expense reported on the income statement

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Reference no: EM131293163

Which one of the following is not correct?

a. For debt issued at par: interest expense reported on the income statement equals the cash paid for interest.

b. For bond repurchases: Gain (loss. on bond repurchase = Cash paid to repurchase – Net book value of bonds.

c. For debt issued at a discount: interest expense reported on the income statement equals cash interest payment less amortization of the discount.

d. For debt issued at a premium, interest expense reported on the income statement equals cash interest payment less amortization of the premium.

e. All of the above are correct.

Reference no: EM131293163

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