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Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Edition 12ISBN: 978-0077862220Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Edition 12ISBN: 978-0077862220 Exercise 22
The City of Dylan issues a 10-year bond payable of $1 million at face value on the first day of Year 1. Debt issuance costs of $10,000 are paid on that day. For government-wide financial statements, how is this debt issuance cost reported
A) $1,000 is recorded as an expense and $9,000 is recorded as an asset.
B) $1,000 is recorded as an expense and $9,000 is recorded as a deferred outflow of resources.
C) $10,000 is recorded as an expense.
D) $10,000 is recorded as an asset.
A) $1,000 is recorded as an expense and $9,000 is recorded as an asset.
B) $1,000 is recorded as an expense and $9,000 is recorded as a deferred outflow of resources.
C) $10,000 is recorded as an expense.
D) $10,000 is recorded as an asset.
Explanation
Verified
Verified
Therefore, Debt Issuance Costs of $10000...
Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
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