1) The receipt of cash dividends on a long-term investment in common stock is accounted for as a debit to Cash and a credit to Investment in Space Inc. Which of the following methods is being used to account for the investment?

a) Equity method

b) Market method

c) Cost method

d) Revenue method

2) If 8% bonds with a face value of $300,000 are issued when the market rate of interest is 7%, the bonds will be issued at:

1. Face Value
2. Twice the Total Face Value
3. A Discount
4. A Premium