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Lake Co. issued 3,000 of its 9%, $1,000 face amount bonds at...

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Accounting

Lake Co. issued 3,000 of its 9%, $1,000 face amount bonds at 101 1/2. In connection with the sale of these bonds, Lake paid the following expenses:

Promotion costs

$ 20,000

Engraving and printing

25,000

Underwriters commissions

200,000
What amount should Lake record as bond issue costs to be amortized over the term of the bonds?
A. $220,000
B. $225,000
C. $245,000
D. $0

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