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A company incurred the following cost in conneetion with the issuance of bonds

1. Printing and engraving= 12000, legal fees= 49000, commissions paid to underwriter=60000.

What amount should be reported as unamortized bond issue cost and where should this amount be reported on the balance sheet.

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  1. Unamortized bonds issue costs are treated as a deferred charge and amortized over the life of the bond. The treatment is the same as that for bonds discount/premium. For presentation purposes, bonds are carried at face value plus unamortized premium, or face value less unamortized discount, less unamortized issuance costs.

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