In U.S. GAAP, bond issue costs are considered ________.
A) an element in determining the carrying value of the bonds outstanding
B) a cost of borrowing that reduces the effective interest expense
C) a period cost
D) an initial cost that is expensed when the bonds are issued

Question

Quizplus · Accepted Answer

Bond issue costs are included in the carrying value of the bonds and amortized over the life of the bonds under U.S. GAAP.

In US GAAP, Bond Issue Costs Are Considered ________