Jorge Corp issued $500,000 of 6%,5-year bonds on January 2,2016 for par.The company incurred $25,000 in bond issue costs.What is the correct amount of bond issue expense to be recorded each semi-annual interest period using GAAP?
A) $5,000
B) $2,500
C) $1,250
D) Unable to determine without amortization table.
Correct Answer:
Verified
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