On january 1 20x7 clyde county issued 100 million of

Reference no: EM13614364

On January 1, 20x7, Clyde County issued $100 million of 5%,20-year bonds at 102. Interest is payable semiannually. Theproceeds were restricted for the construction of a new county waterpurification plant for its Water Enterprise Fund.

What effect will the bond premium amortization have on interestexpense in 20x7, assuming straight-line amortization is used whereappropriate?

Reference no: EM13614364

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