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7) Investments iti debt securities available-for-sale are reported at: A) Historical cont. B) Discounted present value. C) Fair value on the reporting date. D) Lower

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7) Investments iti debt securities available-for-sale are reported at: A) Historical cont. B) Discounted present value. C) Fair value on the reporting date. D) Lower of cost or market. 8) Cutter Enterprises parchused equipment for $84,000 on January 1, 2024. The equipment is expected w have a five-year life and a residual value of 55,400 . Using the straight-line method, depreciarion for 2024 would be: A) None of the other answer choices are correct. B) 584,000 . C) 515,720 . D) $16,800. 9) Alison's dress shop buys dresses from MoGuire Manufactaring. Alison purchased dresses from McGuire on July 17 and reccived an invoice with a list price amount of 57,000 and payment terms of 3/10,n30. Alison uses the net method to record purchases. Alison should record the purchase at: A) 53,395. B) 57,210 . C) 57,000 . D) 56,790 . 10) Cutter Enterprises purchased equipment for 587,000 os January 1, 2024. The equipment is expected to have a five-year life and a residual value of 55,400 . Using the sum-of-the-years'digits method, depreciation for 2024 and book value on December 31,2024 , would be: A) 529,000 and 552,600 , respectively. B) 527,200 and 554,400 , respectively. C) $29,000 and $58,000, respectively. D) $27,200 and $59,800, recpectively. 11) Awerbach Incorporated issued 4% bonds on October 1,2024 . The bonds have a maturity date of September 30,2034 and a face value of 5300 million. The bonds pay interest each March 31 and Septernber 30, beginning March 31, 2025. The effective interest rate cstablished by the market was 6%. Averbech issoed the bonds: A) Cannot be determined from the given information. B) At a premium. C) At a discocant. D) At pat, 12) Bcod X and bond Y both are issued by the same company. Each of the bonds has a maturity value of 5100,000 and each peys interest at 8%. The current market rate of interest is 8% for each. Bond X matures is 7 years while bond Y matures in 10 years. Which of the following is correen? A) Bond X sells for more than bond Y, B) Bcta bonda sell for the same amount. C) Hond Y wells for more than bond X. D) Bos bonds sell for more than $100,000

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