1. If there is a loss on bonds redeemed early, the + a. loss is debited directly to Retained Earnings. b. bonds' carrying value was less than the redemption price. c. bonds' carrying value was greater than the redemption price. + d. loss is debited to Interest Expense, as a cost of financing.' 2. The term residual claim refers to a shareholders' right to + a. receive dividends. + b. share in assets upon liquidation. + c. acquire additional shares when offered. + d. exercise a proxy vote t 3. .McGoff Company deposits 20,000 in a fund at the end of each year for 5 years. The fund pays interest of 4% compounded annually. The balance in the fund at the end of 5 years is computed by multiplying- a. 20,000 by the future value of 1 factor.- b. 100,000 by 1.04. + c. 100,000 by 1.20. d. 20,000 by the future value of an annuity factor.' t 4. t Howard Company is about to issue 4,000,000 of 5-year bonds, with a stated rate of interest of 10%, payable semiannually. The market rate for such securities is 12%. How much can Howard expect to receive for the sale of these bonds? a. 3,705,578. b. 4,000,000 c. 4,324,440. d. None of these answer choices are correct.' + t t