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27. Kiss Greetings planned to raise $500,000 by issuing bonds. The bond certificates were printed bearing a stated interest rate of 6%, which was equal to the yield rate of interest. However, before the bonds could be issued, economic conditions forced the yield rate up to 7%. If the life of the bonds is 10 years and interest is paid annually on December 31, how much will the company receive from the sale of the bonds? a. exactly $500,000 b. less than $500,000 c. more than $500,000 d. The 6% bonds will not be sold at all. The company will be required to have the certificates reprinted bearing the new yield rate of 7%. 28. Regan Company reported net income of $95,000 for Year 1. Early in Year 2, the company discovered that its Year 1 ending inventory was overstated by $5,000. Refer to Regan Company. What would be the effects of the inventory errors for Year 1? a. Assets and shareholders' equity will be overstated by $5,000 on the statement of financial position; cost of goods sold and net income will be understated by $5,000 on the statement of earnings. b. Assets and shareholders' equity will be overstated by $5,000 on the statement of financial position, and cost of goods sold will be overstated by $5,000 on the statement of earnings; thus, net income will be understated by $5,000. c. Assets and shareholders' equity will be understated by $5,000 on the statement of financial position, and cost of goods sold will be overstated by $5,000 on the statement of earnings; thus, net income will be understated by $5,000. d. Assets and shareholders' equity will be overstated by $5,000 on the statement of financial position, and cost of goods sold will be understated by $5,000 on the statement of earnings; thus, net income will be overstated by $5,000