1-5

A gain on the redemption of a bond is recorded if the price paid for the redemption is above the carrying amount.

True

False

To determine a new depreciation amount after a change in estimate of a plant asset's useful life, the asset's remaining depreciable cost is divided by its remaining useful life.

True

False

The par value of common stock must always be equal to its market value on the date the stock is issued.

True

False

Dailey Company is a publicly held corporation whose $1 par value stock is actively traded at $22 per share. The company issued 2,000 shares of stock to acquire land recently advertised at $55,000. When recording this transaction, Dailey Company will

		debit Land for $55,000.
		credit Common Stock for $44,000.
		debit Land for $44,000.
		credit Paid-In Capital in Excess of Par Value for $53,000.

The declining-balance method of depreciation is called an accelerated depreciation method because it depreciates an asset in a shorter period of time than the asset's useful life.

True

False