2. If the market interest rate for a bond is lower than the stated interest rate, the bond will sell at a a premium. b. a discount. c. par. d. either a discount or premium. 3. The total cost of borrowing is increased only if the A) bonds were issued at a premium. (B) bonds were issued at a discount. C) bonds were sold at face value. D) market interest rate is less than the contractual interest rate on that date. 4. A company purchased factory equipment on March 31, 2023 for $8,000. It is estimated tha the equipment will have a $500 salvage value at the end of its 5-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2023 is A) $7,500. B) $1,125. C) $6,875. D) $5,625. If a company fails to prepare an adjusting entry to estimate bad debts, ) net income is overstated and cash realizable value is overstated. ) expenses are understated and assets are understated. expenses are understated and net realizable value is understated. net income is overstated and assets are understated. A high accounts receivable turnover ratio indicates the company's sales are decreasing. the company's credit sales are increasing. customers are making payments very slowly. customers are making payments quickly.