1.) Franklin Corporation issues $80,000, 10%, five-year bonds on January 1 for $83,600. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is

a.$3,560

b.$3,200

c.$6,400

d.$3,640

2.) On January 1 of the current year, Barton Corporation issued 7% bonds with a face value of $94,000. The bonds are sold for $89,300. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is

a.$3,290

b.$470

c.$7,520

d.$7,990

3.) If the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be

a.greater than or less than $500,000, depending on the maturity date of the bonds

b.greater than $500,000

c.equal to $500,000

d.less than $500,000

4.) Balance sheet and income statement data indicate the following:

Bonds payable, 9% (due in 15 years)	$978,033
Preferred 8% stock, $100 par
(no change during the year)	$200,000
Common stock, $50 par
(no change during the year)	$1,000,000
Income before income tax for year	$423,975
Income tax for year	$127,193
Common dividends paid	$60,000
Preferred dividends paid	$16,000

Based on the data presented above, what is the times interest earned ratio (round to two decimal places)?

a.2.37

b.4.82

c.3.37

d.5.82