Flotation Costs

Multiple Choice

Flotation costs:

A) are amortized using a declining-balance method over the life of the loan.
B) are amortized using the straight-line method over the life of the loan.
C) are deducted as a business expense in the year incurred.
D) cannot be deducted as a business expense.
E) are deducted as a business expense at the time the loan is repaid in full.