Question
How are commissions, legal fees, and printing fees associated with a bond issue accounted for? Select answer from the options below By adding them to
How are commissions, legal fees, and printing fees associated with a bond issue accounted for?\ Select answer from the options below\ By adding them to any discount on bonds or subtracting them from any premium on bonds when the bonds are sold.\ By charging them to an expense account in the year the bonds are actually sold, meaning there is revenue to charge them against on the income statement.\ By recording them as a reduction to the issue amount of the bond payable and then amortizing into expense over the life of the bond, through an adjustment to the effective interest rate.\ By charging them to an expense account in the year the bonds are originally dated, whether or not they are sold in that year.
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