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15. On January 2, Vole Co. issued bonds with a face value of $480,000 at a discount to yield 10%. The bonds pay interest semiannually.

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15. On January 2, Vole Co. issued bonds with a face value of $480,000 at a discount to yield 10%. The bonds pay interest semiannually. On June 30, Vole paid bond interest of $14,400. After Vole recorded amortization of the bond discount of $3,600, the bonds had a carrying amunt of 363,600. What amount did Vole receive upon issuing the bonds? b. $367,200 c. $476,400 d. $480,000 16. On January 1, Year 1, Fox Corp. issued 1,000 of its 10% $1,000 bonds for $1,040,000. These bonds were to mature on January 1, Year 11, but were callable at 101 any t Year 11, but were callable at 101 any time after ecember 31, Year 4,. Interest was payable semiannually on July 1 and January 1. On July 1, Year 6, Fox called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Fox's gain or loss in Year 6 on this early extinguishment of debt was a a. $30,000 gain. b. $22,000 gain. c. $10,000 loss. d. $ 8,000 gain. 17. Verona Co. had $500,000 in current liabilities at the end of the current year. Verona issued $400,000 of common stock subsequent to the end of the year but before the financial statements were issued. The proceeds from the stock issue were intended to be used to pay the current debt. What amount should Verona report as a current liability on its balance sheet at the end of the current year? a. $0 b. $100,000 c. $400,000 d. $500,000

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