Answers to Question 1-3 must be minimum 60 words. No plagiarism.
1. What is this reclassification called on the balance sheet?
2. Basically the PV of a bond is the sum of the single amount PV of the principal plus the annuity PV of the coupon interest payments. Does this make sense?
3. The two methods for recording amortization of bond premiums and discounts are the straight-line and effective-interest methods. Are both methods GAAP?