E Co. has incurred $10,000 in costs to issue bonds. The costs are fees paid to a transfer agent, commission on the sale of bonds, and other related fees and expenses. How should these costs be deducted for tax purposes?

Question 10 options:

	Deduct $10,000 over a two-year period, claiming $5,000 per year.
	Deduct $10,000 over a five-year period, claiming $2,000 per year.
	Claim $10,000 once all the bonds are sold.
	Claim $10,000 as an expense once the bonds mature.

B Co. plans to raise $200,000 for an expansion project through fixed dividend preferred shares at 9%. B's tax rate is 27%. How much corporate income will B require to service the cost of the expansion?

Question 7 options:

	$0
	$18,000
	$24,658
	$4,860