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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