16. A company issues $20,000,000,7,8%, 20-year bonds to yield 8% on June 1, 2020. Interest is paid on June 1 and December 1. The proceeds from the bonds are $19,604,144. Using effective- interest amortization, what will the unamortized discount on the bonds be on the December 31, 2021 balance sheet (round to the nearest dollar)? a $385,852 b. $390,968 c. $387,358 d. S391,690 e none of above 17. On June 30, 2021, Debtor Co. had outstanding 8%, $6,000,000 face amount, 15-year bonds maturing on June 30, 2031. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount on June 30, 2021 were $210,000. On June 30, 2021, Debtor acquired all of these bonds at 94 (i.e., 94% of face value) and retired them. The entry to record the redemption will include a a. credit of $150,000 to Gain on Redemption of Bonds. b. debit of $150,000 to Loss on Redemption of Bonds. C. credit of $6,000,000 to Bonds Payable. d. debit of $210,000 to Discount on Bonds Payable. e. None of above 18. On January 1, 2020, Commonwealth Inc. leases equipment to Tap Inc. The equipment has a fair value of $100,000, a carrying value of $80,000, an economic life of four years, and a lease term of three years. Commonwealth's implicit rate of the lease is 10% and there is a purchase option at the end of the lease of $10,000 that is reasonably expected to be executed by Tap at that time. The annual lease payment is $33,809.39, with the first payment due immediately on January 1, 2020. Commonwealth's initial measurement of lease receivable is $100,000. The gross profit and interest revenue recognized for 2020 by Commonwealth Inc. are (round to the nearest dollar) Gross profit Interest revenue $20,000 $6,619 b. $20,000 $10,000 SO $10,000 d. SO SO a. c. 19. Dockside Inc. entered into a 5-year lease and recorded a right-of-use asset and lease liability of $264,000 on December 31, 2020. Dockside Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease had an estimated 5-year useful life with no residual value. The first lease payment of $58,074 was due upon commencement of the lease (i.e., 12/31/2020). The current portion of lease liability reported on December 31, 2021 is (round to the nearest dollar) a. 58,074 b. 158,148 c. 47,778 d. $50,167 e. None of above