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

____ 44. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in

a.	the cash flows from financing activities section
b.	the cash flows from investing activities section
c.	a separate schedule
d.	the cash flows from operating activities section

____ 45. In regards to the shares of a corporation, which statement is not valid:

a.	authorized shares may be greater than issued shares
b.	issued shares may be greater than outstanding shares
c.	outstanding shares may be greater than authorized, due to any treasury shares held
d.	treasury shares reduce the number of issued shares to determine outstanding shares

____ 46. When the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are

a.	convertible bonds
b.	unsecured bonds
c.	debenture bonds
d.	callable bonds

____ 47. The balance in Premium on Bonds Payable

a.	should be reported on the balance sheet as a deduction from the related bonds payable
b.	should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the interest method
c.	would be added to the related bonds payable on the balance sheet
d.	should be reported in the paid-in capital section of the balance sheet

____ 48. The excess of sales price of treasury stock over its cost should be credited to

a.	Treasury Stock Receivable
b.	Premium on Capital Stock
c.	Paid-In Capital from Sale of Treasury Stock
d.	Income from Sale of Treasury Stock

____ 49. A corporation issues for cash $8,000,000 of 8%, 30-year bonds, interest payable semiannually. The amount received for the bonds will be

a.	present value of 60 semiannual interest payments of $320,000, plus present value of $8,000,000 to be repaid in 30 years
b.	present value of 30 annual interest payments of $640,000
c.	present value of 30 annual interest payments of $640,000, plus present value of $8,000,000 to be repaid in 30 years
d.	present value of $8,000,000 to be repaid in 30 years, less present value of 60 semiannual interest payments of $320,000