QUESTION 28

Japes City issued $1,000,000 general obligation bonds at 101 to build a new city hall. As part of the bond issue, the city also paid a $500 underwriter fee and $2,000 in debt issue costs. What amount should Japes City report as other financing sources?

1. $1,010,000
2. $1,008,000
3. $1,007,500
4. $1,000,000