A company issues bonds at a discount. The bond discount is

A company issues bonds at a discount. The bond discount is

A company issues bonds at a discount. The bond discount is:

A. Added to bonds payable on balance sheet

B. Amortized as additional interest expense over bond life

C. Recognized as gain at issuance

D. Classified as equity

Answer: B

Explanation: Bond discount increases effective interest expense through amortization.