18. On 1/1/17, Able Company accepts a 3-year, $10,000 non-interest-bearing note from Company in payment of Baxter's open account receivable of $7,938. Able has receivable with a stated interest rate of 9%. At 12/31/17, what interest revenue accrue? a. $0 b. $635 c $714 d. $900 should Able 19. On January 1 Year 1, Gilson Corporation issued 1,000 of its 9%, $1,000 callable bonds for $1,030,000. The bonds are dated January 1, Year 1, and mature on December 31, Year 15 Interest is payable semiannually on January 1 and July 1. The bond issuer at 102 on any interest payment date after December 31, Year 5. The unamortized bond premium was $14,000 at December 31, Year 8, and the market price of 99 on this date. In its December 31, Year 8, balance sheet, at what amount should Gilson report the carrying value of the bonds? a. $1,020,000 b. $1,016,000 c. $1,014,000 d. $990,000 s can be called by the the bonds was 20. On 1/2/17, Nast Co. issued 8% bonds with a face amount of $1 milion that mature on 1/2/23. The bonds were issued to yield 12%, resulting in a discount of $150,000 Nast incorrectly used the straight-line method instead of the effective-interest method to amortize the discount. How is the carrying amount of the bonds affected by the error? a. b. C. d. At 12/31/17 overstated overstated understated understated At 1/2/23 understated no effect overstated no effect