Bond issue costs a. should be amortized by the straight-line method to interest expense b. should be included in bond discount or subtracted from bond premium and amortized by the effective-interest method c. should be subtracted from bonds payable on the balance sheet d. should not be amortized and should be written off at bond retirement
Bond issue costs a. should be amortized by the straight-line method to interest expense b. should be included in bond discount or subtracted from bond premium and amortized by the effective-interest method c. should be subtracted from bonds payable on the balance sheet d. should not be amortized and should be written off at bond retirement
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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16. Bond issue costs
a. should be amortized by the straight-line method to interest expense
b. should be included in bond discount or subtracted from bond premium and amortized by the effective-interest method
c. should be subtracted from bonds payable on the balance sheet
d. should not be amortized and should be written off at bond retirement
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