A corporation's underwriting cost on a newly issued bond Multiple Choice is an immediate outflow and...
A corporation's underwriting cost on a newly issued bond
Multiple Choice
-
is an immediate outflow and immediate tax write-off.
-
is an immediate tax write-off with a deferred outflow.
-
is a deferred outflow and deferred tax write-off.
-
is an immediate outflow and deferred tax write-off.
Homework Answers
Option 'D' is correct
Is an immediate outflow and deferred tax write-off
A corporation's underwriting cost on a newly issued bond is an immediate outflow and Deferred tax write-off.
Underwriting costs is an expense and cash outflow in the hands of corporation and cannot be write off immediately but it has to be deferred over the life of the bond.
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A corporation's underwriting cost on a newly issued bond
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