6. For which of the following transactions would the use of the present value of an annuity due concept be appropriate in calculating the presentvalue of the asset obtained or liability owed at the date of incurrence?

Question options:

A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 9%.

A capital lease is entered into with the initial lease payment due one month subsequent to the signing of the lease agreement.

A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement.

A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 7%.

7. On January 1, 2015, Canden Company started to make annual deposits in order to accumulate $1,000,000 by January 1, 2019. This fund will earn annual interest of 9%. What are the four annual deposits that Canden should make at the beginning of each year? Round your answers to the nearest whole dollar.

. Frick Co. incurred costs of $3,300 when it issued, on August 31, year 1, five-year debenture bonds dated April 1, year 1. What amount of bondissue expense should Frick report in its income statement for the year ended December 31, year 1?

Question options:

	$3,300
	$ 495
	$ 220
	$ 240