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d. An insurance company purchased 100 million corporate bonds at the beginning of 2022. The insurance company intends to hold the bond to the end

d. An insurance company purchased 100 million corporate bonds at the beginning of 2022. The insurance company intends to hold the bond to the end of the bond term, 2025. To purchase the bond, the insurance company incurred 500,000 transaction fees. For the initial recognition of the 500,000 transaction fees, should it be capitalized or expensed? Explain your answer.

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