1. Margaret bought a $1,000, five-year bond with the coupon rate of 6%. On the purchase date, the market interest rate was 4%. The bond pays interest semi-annually. How much interest would Margaret receive semi-annually?

Select one:

a. $60

b. $30

c. $20

d. $40

2. The journal entry to record a stock split includes a:

Select one:

a. Debit to cash

b. Credit to retained earnings account

c. Credit to associated shares account

d. None of the available options

3. The cost of a patent is

Select one:

a. Held as an asset until the company ceases business

b. Amortized over the life of the patent

c. Expensed immediately

d. Recorded at a nominal amount of $1 until revenue is produced