1.

A company has bonds with a principal value of $1,000,000 outstanding. The unamortized premium on the bonds is $14,400. The company redeemed the bonds at 101. What is the companys gain or loss on the redemption?

Group of answer choices

$4,400 gain

$4,400 loss

$0

$10,000 loss

$10,000 gain

2.

In the current year, a corporation had sales of $500,000, net income of $150,000, interest expense of $30,000, and tax expense of $20,000. Its net sales were $1,000,000 and its cost of goods sold was $200,000. What was its times interest earned for the year?

Group of answer choices

5.00

4.00

7.50

6.67

5.55