Question
121. On January 1 of Year 1, Mohr Express Airways issued $3,150,000 of 5% bonds that pay interest semiannually on January 1 and July 1.
121. On January 1 of Year 1, Mohr Express Airways issued $3,150,000 of 5% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,840,000 and the market rate of interest for similar bonds is 6%. The bond premium or discount is being amortized at a rate of $10,333 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:
121B. Mohr Company purchases a machine at the beginning of the year at a cost of $30,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 8 years with a $4,000 salvage value. Depreciation expense in year 2 is:
121. Mohr Company purchases a machine at the beginning of the year at a cost of $64,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 5 years with a $2,000 salvage value. Depreciation expense in year 4 is:
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