Question

During the year, Hamlet Inc. paid $28,000 to have bond certificates printed and engraved, paid $160,000 in legal fees, paid $17,000 to a CPA for registration information, and paid $270,000 to an underwriter as a commission. What is the amount of bond issue costs?

a. $475,000.
b. $28,000.
c. $188,000.
d. $430,000

Answer 1

The bond issue costs for Hamlet Inc. total $475,000, which is the sum of costs for printing and engraving the bond certificates, legal fees, CPA charges, and underwriter's commission.

Step-by-step explanation:

The total bond issue costs for Hamlet Inc. would be the sum of the costs for printing and engraving the bond certificates, legal fees, CPA charges for registration information, and the underwriter's commission. Therefore, the calculation is as follows:

• Printed and engraved bond certificates: $28,000
• Legal fees: $160,000
• CPA for registration information: $17,000
• Underwriter's commission: $270,000

Adding these costs, the total bond issue costs would be $28,000 + $160,000 + $17,000 + $270,000 = $475,000.

So, the correct answer to the question is (a) $475,000.