On December 31, 20X5. Cobb issued 2,000 of its 10%, $1,000 bonds at 99. The issuance price established a bond discount of $20,000. In connection with the sale of these bonds. Cobb paid the following expenses:

Legal and accounting fees

$45,000

Printing of the prospectus

$55,000

Underwriting fees

$85,000

In Cobb's December 31, 20X5, balance sheet, bond issue costs total

$185,000.

$130,000.

$120,000.

$160,000.