1. Bonds are usually classified in other liabilities.
2. Transaction costs always reduce the value of the financial liability.
3. The cash received will be more than the face value of the bond if a bond is issued at a premium.
4. Amortization of a discount on bonds payable will reduce interest expense.
5. Borrowing costs are capitalized for a qualifying asset.

Required:
Identify whether each statement is true or false.