Lake Co. issued 3,000 of its 9%, $1,000 face amount 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
Underwriters commissions	200,000

What amount should Lake record as bond issue costs to be amortized over the term of the bonds?

A.

$220,000

B.

$225,000

C.

$245,000

D.

$0