Bond issue costs
A)must be expensed when incurred.
B)must be amortized over the life of the bonds.
C)are recorded in an asset account and not amortized.
D)appear on the balance sheet as a liability.

Question

Quizplus · Accepted Answer

Bond issue costs should be amortized over the life of the bonds. This means that a portion of the costs is recorded as an expense each period, in proportion to the amount of the bond liability that has been reduced through periodic principal payments.

Bond Issue Costs