Question
E Co. has incurred $10,000 in costs to issue bonds. The costs are fees paid to a transfer agent, commission on the sale of bonds,
E Co. has incurred $10,000 in costs to issue bonds. The costs are fees paid to a transfer agent, commission on the sale of bonds, and other related fees and expenses. How should these costs be deducted for tax purposes?
Deduct $10,000 over a two-year period, claiming $5,000 per year.
Deduct $10,000 over a five-year period, claiming $2,000 per year.
Claim $10,000 once all the bonds are sold.
Claim $10,000 as an expense once the bonds mature.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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