Question
Aztec, Inc. pays $55,000 in printing, legal fees, commissions, and other costs to issue new bonds. How is the company most likely to record these
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Aztec, Inc. pays $55,000 in printing, legal fees, commissions, and other costs to issue new bonds. How is the company most likely to record these costs on its financial statements?
a. A liability under U. S. GAAP and a reduction of the carrying value of the debt under IFRS.
b. A cash outflow from investing activities under both U. S. GAAP and IFRS.
c. An asset under U. S. GAAP and a reduction of the carrying value of the debt under IFRS.
Aztec, Inc. pays $55,000 in printing, legal fees, commissions, and other costs to issue new bonds. How is the company most likely to record these costs on its financial statements?
| a. | A liability under U. S. GAAP and a reduction of the carrying value of the debt under IFRS. | |
| b. | A cash outflow from investing activities under both U. S. GAAP and IFRS. | |
| c. | An asset under U. S. GAAP and a reduction of the carrying value of the debt under IFRS. |
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
5th edition
978-1259728877, 1259728870, 978-1259565403
