(1) At year-end, Owl Co. estimates that it is more likely than not, a 55% expectation, that $25,000 of a $200,000 Deferred Tax Asset account regarding a temporary depreciation method difference will not be realized. What are the financial statement effects of any entry Fox would make for this year-end adjustment?

A: NEL: NESE: NENI: NECFs: NE

A: DL: NESE: NENI: DCFs: NE

A: DL: NESE: DNI: DCFs: D

A: DL: NESE: DNI: DCFs: NE

(2) Fox Co. issued $10,000,000 of bonds at 102. Each bond contains 20 detachable stock warrants that allow the bondholder to purchase a share of Fox's common stock for $55. Immediately after the issue, the bonds without the warrants were selling for $1,005. The stock warrants had no readily determinable value. How much will be credited to Paid-in CapitalStock Warrants?

$0

$100,000

$150,000

$75,000