Use of the effective-interest method in amortizing bond premiums and discounts results in1. a greater amount of interest income over the life of the bond issue than would result from use of the straight-line method.2. a varying amount being recorded as interest income from period to period.3. a variable rate of return on the book value of the investment.4. a smaller amount of interest income over the life of the bond issue than would result from use of the straight-line method.

Explanation:

Use of the effective-interest method in amortizing bond premiums and discounts results in

a. a greater amount of interest income over the life of the bond issue than would result from use of the straight-line method.

c. a variable rate of return on the book value of the investment.

d. a smaller amount of interest income over the life of the bond issue than would result from use of the straight-line method.

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answer; operating revenues;