1. Lionhead, Inc. paid $300,000 to retire a bond with a face value of $350,000. The note was issued with an 8% coupon rate paid semi-annually. The note was five years from maturity and had a carrying amount of $340,000.

What is the net gain or loss on the redemption of the note?

Group of answer choices

The provided answers are incorrect

$40,000 gain

$10,000 loss

$50,000 gain

$10,000 gain

2. On July 1, 2020, the Veena Group issues $1,000,000 of ten-year, 8% bonds to yield 9%. The bonds pay interest semi-annually on December 31. The bond proceeds were $960,436. The bond interest payment for 2020 is:

Group of answer choices

None of the provided answers are correct

$40,000

$86,440

$43,220

$45,000

3. Which one of the following events would be considered a contingent liability?

Group of answer choices

A company has renewed its line of credit up to $500,000.

A company estimates that it will probably have to pay $775,000 to the SEC for a violation of securities laws.

None of the provided answers are correct

A company owes $225,000 for equipment purchased on credit.

A company believes that it is reasonably possible it will lose a lawsuit and damages could be up to $1,000,000.

4. Beasty Rabbit Corporation manufactures miniature trampolines. The company offers a one-year warranty on all trampolines. During the year, the company recorded net sales of $272,819. Historically, about 2% of all sales are returned under warranty and the cost of repairing and/or replacing goods under warranty is about 50% of retail value. Assume that at the start of the year Beasty Rabbit balance sheet included an accrued warranty liability of $1,455 million and at the end of the year, the accrued warranty liability balance was $1,825 million.

What was Beasty Rabbit Corporations warranty expense for the current year?

*round your answer to the nearest $1

5. Because diluted EPS include dilutive securities such as convertible securities and employee stock options, it must always be less than or equal to basic EPS.

Group of answer choices

True

False

6. Huston Company reports the following information in its Form 10-K:

	2021	2020
Net Income	22,183	21,421
Preferred Stock Dividends	1,648	1,641
Common Stock Dividends	7,902	7,757
Average Common Shares Outstanding	4,856	4,914
Diluted Average Common Shares Outstanding	4,914	5,020

Determine Huston's basic EPS for fiscal 2021. Round to the nearest penny (eg: 1.23, 0.12)