10) The condition for bond issued at a discount is that the market rate is less than the effective interest rate of interest. (True/False)

11) Presented below is the information related to Gray Corporation:

Common Stock, $6 par, 100,000 shares issued and outstanding

Paid-in-Capital in Excess of ParCommon Stock $5 per share

Preferred 5% Stock, $10 par, 300,000 shares issued and outstanding

Paid-in-Capital in Excess of ParPreferred Stock $10 per share

Retained Earnings $840,000

Accumulated gain from comprehensive income $20,000

The total stockholders equity of Gray Corporation is?

12) Green Company issued 20,000 shares of $5 par common stock. Six months later Green acquired 4,000 shares of its own common stock at $13 per share. Three months later Green sold 1,000 of these shares at $18 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 1,000 treasury shares, Green should credit Treasury Stock at?