Connection with the sale of these bonds, Socrates paid the following expenses: Promotion costs P40,000; Engraving and printing 50,000; underwriters’ commissions 400,000. What amount should Socrates record as bond issue costs to be amortized over the term of the bonds? 0 440,000 450,000

Connection with the sale of these bonds, Socrates paid the following expenses: Promotion costs P40,000; Engraving and printing 50,000; underwriters’ commissions 400,000. What amount should Socrates record as bond issue costs to be amortized over the term of the bonds? 0 440,000 450,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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Question

Connection with the sale of these bonds, Socrates paid the following expenses: Promotion costs P40,000; Engraving and printing 50,000; underwriters’ commissions 400,000.
What amount should Socrates record as bond issue costs to be amortized over the term of the bonds?

440,000

450,000

490,000

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