Question
Jorge Corp issued $500,000 of 6%, 10- year bonds on January 2, 2016 for par. The company incurred $50,000 in bond issue costs. What is
Jorge Corp issued $500,000 of 6%, 10- year bonds on January 2, 2016 for par. The company incurred $50,000 in bond issue costs. What is the correct amount of bond issue expense to be recorded each semi - annual interest period using GAAP?
A. $1,250
В. $2,500
С. $5,000
D. Unable to determine without amortization table.
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Advanced Accounting
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