The amount to be reported as current -year expenses is option B that is $11,000.
What is amortization?
- The process of reducing the value of a debt or an intangible asset is known as amortization.
- Lenders, like financial institutions, utilize amortization plans to show a loan payback schedule based on a certain maturity date.
- Intangibles were amortized (expensed) through time in accordance with the GAAP matching principle, which links the value of the asset towards the revenues it provides (GAAP).
- When loan payments are less than accrued interest, a negative amortization may occur, increasing rather than decreasing the amount owed by the borrower.
- Most accountancy and spreadsheet programs provide tools for automatically calculating amortization.
Direct acquisition-related expenses are deducted as incurred and include finder's fees, professional as well as consulting fees, and basic administrative expenses. Debt issuance costs are recorded on the balance sheet as a straight-line deduction from the debt's carrying amount and are then amortized throughout the debt's life through using interest method.
Learn more about amortization here:
brainly.com/question/10561878
#SPJ4
The complete question is mentioned under:
A company incurred the following costs to complete a business combination in the current year:
-Issuing debt securities $30,000
-Registering debt securities 25,000
-Legal fees 10,000
-Due diligence costs 1,000
What amount should be reported as current-year expenses, not subject to amortization?
A. $66,000
B. $11,000
C. $1,000
D. $36,000
