16. The conversion of preferred stock is recorded by the A) B) incremental method C) D) par value method. book value method. market value method. Under the effective-interest method of bond discount or premium amortization, the periodic interest expense is equal to A) B) the market rate multiplied by the beginning-of-period carryjing amount of the 17. the market rate of interest multiplied by the face value of the bonds. C) D) bonds. the stated (nominal) rate of interest multiplied by the face value of the bonds. the stated rate multiplied by the beginning-of-period carrying amount of the bonds. 18. At the beginning of 2015, Flaherty Company had retained earnings of $400,000. During the year Flaherty reported net income of $100,000, sold treasury stock at a "gain" of $36,000, declared a cash dividend of $60,000, and declared and issued a small stock dividend of 3,000 shares ($10 par value) when the fair value of the stock was $20 per share. The amount of retained earnings available for dividends at the end of 2018 was A) $446,000. B) $416,000. C) $380,000. D) $410,000