Question

assume loan cost points must be spread, or recognized, over several years. in that case, which of the following statements is not correct?

a. the number of years over which the points will be recognized is determined

b. each year a certain portion of the points cost will be charged to current operations

c. the total cost of the loan cost points would first be placed on the balance sheet

d. the annual charge would be recorded as an amortized expense

e. all of the above are correct

f. none of the above are correct

Answer

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