21) On May 1, 2021, Gray Company issued a note payable to Fidelity Bank in the amount of $4,800,000, bearing interest at 10%, and payable in four equal annual principal payments of $1,200,000. The first payment for interest and principal was made on May 1, 2022. At December 31, 2022, Gray should record accrued interest payable of?

22) A note payable which is due in more than 12 months is a long-term liability. (True/False)

23) To record any liability, the payment must be probable and reasonably estimated. (True/False)

24) On January 1, 2021, Major Company acquires $500,000 of Minor Company's 5-year, 8% bonds at a price of $650,000 to yield 6%. Interest is payable each December 31. The bonds are classified as held-to-maturity. Assuming that Major Company uses the effective-interest method, what is the amount of interest revenue that would be recognized in 2022 related to these bonds?

25) Investments in equity securities are adjusted to fair value at the end of the period. (True/False)

26) During 2021 Major Company purchased 8,000 shares of Minor, Inc. for $10 per share. During the year Major Company sold 2,000 shares of Minor, Inc. for $23 per share. At December 31, 2021 the market price of Minor, Inc.'s stock was $25 per share. What is the total amount of gain/(loss) that Major Company will report in its income statement for the year ended December 31, 2021 related to its investment in Minor, Inc. stock?

27) At December 31, 2021, Major Company has an equity portfolio valued at $200,000. Its cost was $120,000. If the Securities Fair Value Adjustment has a debit balance of $5,000, how much of an adjustment will be necessary at year end?

28) On January 1, 2021 Major Company purchased 40% of the outstanding common stock of Minor, Inc. and used the equity method to account for the investment. During 2021 Minor, Inc. reported net income of $2,000,000 and distributed dividends of $400,000. The ending balance in the Investment in Major Company account at December 31, 2021 was $1,000,000 after applying the equity method during 2021. What was the purchase price Major Company paid for its investment in Minor, Inc?