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When bonds and other debt are issued, costs such as legal costs, printing costs, and underwriting fees are referred to as debt issue costs. When
When bonds and other debt are issued, costs such as legal costs, printing costs, and underwriting fees are referred to as debt issue costs. When debt issue costs are incurred, the: Multiple Choice Recorded amount of the debt is increased by the debt issue costs. Debt issue costs are recorded separately as an asset. Increase in the effective interest rate caused by the debt issue costs is reflected in the interest expense. Decrease in the effective interest rate caused by the debt issue costs is reflected in the interest expense
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