Question

Company issues 5-year debentures ₹1,00,00,000 at par. Issue expenses ₹2,00,000. If company chooses to amortise issue expenses over life of debentures, annual amortisation is:

A ₹40,000
B ₹20,000
C ₹2,00,000 in first year only
D ₹1,00,000
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