Choice "C" is correct. Bond issue costs are recorded as deferred charges, and amortized over the life of the related debt. Amortization usually follows the straight-line method. Amortization for 1 1/2 years should have been recorded.

Choice "a" is incorrect. Bond issue costs are recorded as deferred charges, and amortized over the life of the related debt. Amortization usually follows the straight-line method. Amortization for 1 1/2 years should have been recorded.
Choice "b" is incorrect. Bond issue costs are recorded as deferred charges, and amortized over the life of the related debt. Amortization usually follows the straight-line method. Amortization for 1 1/2 years should have been recorded.
Choice "d" is incorrect. Bond issue costs are recorded as deferred charges, and amortized over the life of the related debt. Amortization usually follows the straight-line method. Amortization for 1 1/2 years should have been recorded.