1.Recognition of tax benefits in the loss year due to a loss carryforward requires:

Select one:

a. The establishment of a deferred tax liability

b. The establishment of a deferred tax asset

c. The establishment of an income tax refund receivable

d. Only a note to the financial statements

2.

Benton Company issues $10,000,000 of 10-year, 9% bonds on April 1, 2017 at 95 plus accrued interest. The bonds are dated January 1, 2017, and pay interest on June 30 and December 31. What is the total cash received on the issue date?

Select one:

a. $9,500,000

b. $9,950,000

c. $9,725,000

d. $9,766,667

e. $10,400,000