Question

During the year, Hamlet Inc. paid $24,000 to have bond certificates printed and engraved, paid $90,000 in legal fees, paid $15,000 to a CPA for registration information, and paid $230,000 to an underwriter as a commission. What is the amount of bond issue costs?A. $360,000.

B. $26,000.
C. $401,000.
D. $186,000.

Answer 1

$359,000

Step-by-step explanation:

Total Bond issue costs can be calculated by adding all the cost related to the issue of bond.

Bond Certificate printing cost = $24,000

Legal fees paid = $90,000

CPA registration = $15,000

Underwriting Commission = $230,000

Total Bond issue costs = $359,000

After adding all the cost we reached at 359,000 and its closest to Option A 360,000