During 2006, Lake Co. issued 3,000 of its 9%, $1,000 face value bonds at 101 1/2. In connection with the sale of these bonds, Lake paid the following expenses:
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|
Promotion costs |
$ 20,000 |
|
Engraving and printing |
25,000 |
|
Underwriters’ commissions |
200,000 |
What amount should Lake record as bond issue costs to be amortized over the term of the bonds?
- $0
- $220,000
- $225,000
- $245,000