A is corrent. Per ASC 835-30-45-3, engraving and printing costs, legal and accounting fees, commissions, promotion costs, and other similar costs should be debited to a deferred charge account and amortized over the term of the bonds. All of the costs given fall into one of these categories, so a total of $255,000 ($15,000 + $80,000 + $10,000 + $150,000) should be recorded as a deferred charge (bond issue costs).
B is incorrect. Per ASC 835-30-45-3, engraving and printing costs, legal and accounting fees, commissions, promotion costs, and other similar costs should be debited to a deferred charge account and amortized over the term of the bonds. All of the costs given fall into one of these categories, so a total of $255,000 ($15,000 + $80,000 + $10,000 + $150,000) should be recorded as a deferred charge (bond issue costs).
B is incorrect. Per ASC 835-30-45-3, engraving and printing costs, legal and accounting fees, commissions, promotion costs, and other similar costs should be debited to a deferred charge account and amortized over the term of the bonds. All of the costs given fall into one of these categories, so a total of $255,000 ($15,000 + $80,000 + $10,000 + $150,000) should be recorded as a deferred charge (bond issue costs).
D is incorrect. Per ASC 835-30-45-3, engraving and printing costs, legal and accounting fees, commissions, promotion costs, and other similar costs should be debited to a deferred charge account and amortized over the term of the bonds. All of the costs given fall into one of these categories, so a total of $255,000 ($15,000 + $80,000 + $10,000 + $150,000) should be recorded as a deferred charge (bond issue costs).
