21.1  Evaluate the following statements: S1. Under the effective-interest method of bond discount or premium amortization, the periodic interest expense is equal to the nominal rate multiplied by the beginning-of-period carrying amount of the bonds. S2. ABC is using an effective interest method in amortizing any premium or discount arising from the bond issue. In case the entity incurs printing costs and legal fees associated with the issuance of bonds, the total costs may be lumped into the discount, or netted against the premium.   a. False, False b. True, False c. True, True d. False, True

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Q: unamortized premium

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