Answer:
Taylor Company
The negligence to amortize the discount on outstanding ten-year bonds payable is the understatement of interest expense for each year. Â This means that the interest expense will be the same for each year instead of increasing by the amortized discount amount. Â The same applies to the bond carrying value, which will remain the same throughout the period.
Explanation:
The discount on bonds payable is an additional interest expense, which is written off yearly over the bonds' maturity period through amortization. Â It increases the amount of the periodic interest payment by the amortized discount.
