11. Typical Product Inc. shipped 100 million coupons in products it sold in 2017. The coupons are redeemable for 30 cents each. Typical anticipates that 70% of the coupons will be redeemed. The coupons expire on December 31, 2018. There were 45 million coupons redeemed in 2017, and 30 million redeemed in 2018.

What was Typical's coupon liability as of December 31, 2017?

A. $16.5 million

B. $7.5 million

C. $21.0 million

D. $13.5 million

12. Hanford Inc. purchased several investments in debt securities during 2015, its first year of operations. The following information pertains to these securities. The fluctuations in their fair values are not considered permanent.

Fair	Fair	Amortized	Amortized
	Value	Value	Cost	Cost
Held to Maturity Securities:	12/31/2017	12/31/2018	12/31/2017	12/31/2018
ABC Co. Bonds	$375,000	$400,000	$367,500	$360,000
	Fair Value	Fair Value
Trading Securities:	12/31/2017	12/31/2018	Cost
DEF Co. Bonds	$48,000	$59,500	$66,000
GEH Inc. Bonds	$47,000	$77,000	$39,000
IJK Inc. Bonds	$44,000	$38,500	$32,900
	Fair Value	Fair Value
Available for Sale Securities:	12/31/2017	12/31/2018	Cost
LMN Co. Bonds	$130,500	$150,400	$140,000

What would be the balance in Beresford's accumulated other comprehensive income with respect to these investments in its 12/31/18 balance sheet (ignore taxes)?

A. $55,100

B. $10,400

C. $26,500

D. $50,200

13. Accumulated other comprehensive income in the shareholders' equity section of the balance sheet reflects changes in the fair value of securities for _______ securities.

A. held-to-maturity

B. available-for-sale

C. trading

D. consolidated

14. As part of a promotion campaign, Gloss Cereal includes one coupon in each issue of various national magazines and offers a toy car in exchange for $1.00 and three coupons. The cars cost Gloss $1.50 each. Experience indicates that 4% of the coupons eventually will be redeemed. During the last month of 2018, the first month of the offer, 12,000,000 coupons were distributed, and 240,000 of the coupons were redeemed. What amount should Gloss report as a promotional expense for coupons on its December 31, 2018 income statement? A. $120,000. B. $80,000. C. $40,000. D. $0.

15. Which of the following situations would not require that long-term liabilities be reported as current liabilities on a classified balance sheet?

A. The long-term debt matures within the upcoming year.

B. The long-term debt is callable by the creditor.

C. All of these situations require the current classification.

D. The creditor has the right to demand payment due to a contractual violation.