During 20x9, Lake Co. issued 3,000 of its 9%, 1,000 face value bonds at 101 1/2. In connection with the sale of these bonds, Lake paid the following expenses:

Promotion costs - 20,000

Engraving and printing - 25,000

Underwriter's commissions - 200,000

What amount should Lake record as bond issue costs to be amortized over the term of the bonds? show the solution and explain.