1. How would the gain of $5,000 on the sale of a fixed asset be reported if the tax rate were 25%?

A: Report the gain for the full $5,000 as part of the income from continuing operations section.

B: Report the gain for the full $3,750 as part of the income from continuing operations section.

C: Report the gain for the full $3,750 as part of the discontinued operations section.

2. What element of the formula for calculating interest is identified as the difference between simple and compound interest if the annual interest rate is compounded annually?

A: The interest rate

B: The amount originally invested or borrowed

C: The numerical amount assigned as principal