____ 36. If $3,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is

a.	$3,300,000
b.	$3,000,000
c.	$3,090,000
d.	$2,910,000

____ 37. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset?

a.	$2,500 loss
b.	$1,000 loss
c.	$2,500 gain
d.	$1,000 gain

____ 38. The excess of issue price over par of common stock is termed a(n)

a.	discount
b.	income
c.	deficit
d.	premium

____ 39. A partnership liquidation occurs when

a.	a new partner is admitted
b.	a partner dies
c.	the ownership interest of one partner is sold to a new partner
d.	the assets are sold, liabilities paid, and business operations terminated

____ 40. A ten-year bond was issued at par for $150,000 cash. This transaction should be shown on a statement of cash flows under

a.	investing activities
b.	financing activities
c.	noncash investing and financing activities
d.	operating activities

____ 41. Which intangible assets are amortized over their useful life?

a.	trademarks
b.	goodwill
c.	patents
d.	all of the above

____ 42. The equity method of accounting for investments

a.	requires a year-end adjustment to revalue the stock to lower of cost or market
b.	requires the investment to be reported at its original cost
c.	requires the investment be increased by the reported net income of the investee
d.	requires the investment be decreased by the reported net income of the investee

____ 43. A characteristic of a fixed asset is that it is

a.	intangible
b.	used in the operations of a business
c.	held for sale in the ordinary course of the business
d.	none of the above