34) In 2016, Cunningham Company determined that it did not accrue $15,000 of interest expense in 2015, which caused a material overstatement of income. Assuming a 35% tax rate, which of the following presents the journal entries that would correct the error?

Retained Earnings		15,000
	Interest Payable		15,000
Income Tax Receivable (or Payable)		15,000
	Retained Earnings		15,000

Retained Earnings		5,250
	Interest Payable		5,250
Income Tax Receivable (or Payable)		9,750
	Retained Earnings		9,750

Retained Earnings		15,000
	Interest Payable		15,000
Income Tax Receivable (or Payable)		5,250
	Retained Earnings		5,250

Retained Earnings		9,750
	Interest Payable		9,750
Income Tax Receivable (or Payable)		5,250
	Retained Earnings		5,250

26) Which type of investment in securities must always be classified as a current asset?

none of these choices are correct, they may all be classified as current or long-term assets

trading securities

available-for-sale securities

held-to-maturity debt securities

27) For available-for-sale securities, a decline in value due to a temporary decline in market value below cost is

disclosed in the financial statements by means of a footnote

disclosed as a loss on the income statement

not disclosed because the decline in value is only temporary

disclosed as a reduction from shareholders' equity on the balance sheet

29) The journal entry to recognize the impairment of a note receivable includes a

credit to Interest Expense

debit to Interest Income

credit to Notes Receivable

debit to Bad Debt Expense