13 Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct? 0.7 points 8 01:52:25 Multiple Choice Bond Y will sell for more than Bond X Both bonds will sell for the same amount. Both bonds will sell at a premium. Bond X will sell for more than Bond Y 14 ABC paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on its common stock. ABC would report cash outflows from activities, as follows: 0.7 points Multiple Choice 8 01:52:09 Operating, $18,000: Financing $0. Operating, $o; Financing $18.000. 0 Operating. $2,000: Financing $16,000. Operating. $12,000: Financing $6.000 15 ABC developed a new horse transport device and incurred research and development costs of $250,000. Rather than continue with their own research, ABC decided to purchase a patent for a similar design from Vail, Inc. for $350,000. What are the total assets and expenses for these developments? 0.7 points Multiple Choice 01:51:57 O Assets $350,000; Expenses $250,000 Assets $0: Expenses $600,000 Assets $250,000: Expenses $350,000, Assets $600,000: Expenses $0. 16 If management can estimate the amount of loss that will occur due to litigation against the company, and the likelihood of the loss is probable, a contingent liability should be 0.7 points 8 01:51:44 Multiple Choice Reported a liability, but not disclosed. Neither disclosed nor reported as a liability Disclosed, but not reported as a liability Disclosed and reported as a liability