1) On March 1, 2019, Dart Corporation issued 12%, $1,000,000 face amount, 10-year bonds for $896,000. Dart reacquired the bonds at 102% of the face amount on March 1, 2021. The unamortized discount on the reacquisition date was $92,500. What is the impact of the reacquisition on Darts pretax income?

a. $112,500 loss.

b. $20,000 gain.

c. $92,500 loss.

d. $20,000 loss.

e. $92,500 gain.

f. $112,500 gain.

2) Earlier this year, Impala Company issued a bond to take advantage of historically low interest rates. When issued, the coupon rate exceeded the effective rate. Which of the following statements is/are correct?

Statement 1: Impalas interest expense recognized in the income statement will remain constant over the term of the bond.

Statement 2: The book (carrying) value of Impalas bond liability will decrease over the term of the bond.

a. Both Statement 1 and Statement 2 are correct.

b. Neither Statement 1 nor Statement 2 is correct.

c. Only Statement 2 is correct.

d. Only Statement 1 is correct.

3) The 1/1/20 balance in accumulated other comprehensive income for Jackson Hole Company was a positive balance of $415. During 2020, Jackson reported:

Unrealized gains on available-for-sale investments of $74

Net income of $130

Paid dividends of $12

Realized gains from the sale of trading securities of $10

Foreign currency translation losses of $48.

Calculate the following amounts:

Total comprehensive income is (a. $166", b. "$154", c. "$144", d. "$156", e. "$26") .

The ending balance in accumulated other comprehensive income is (a. "$441", b. "$439", c. "$571", d. "$451",e."$429") .