7) On January 1, 2014, Maine Company issued a 10% callable bond which has a par value of $100,000 for $92,000. The bond is callable at 103 anytime after January 1, 2019. The entire bond was called back on January 1, 2020 when the unamortized discount had a balance of $2,000. Compute the amount of the gain or loss when the bond was retired on January 1, 2020. 8) A company uses the effective interest method of amortization for a bond issued as a premium. In the early years of the life of the bond, the interest expense will be less than the interest paid. In the later years of the bond's life, the interest expense will be greater than the interest paid. (True/False) 9) A bond was issued on May 1, 2020. The interest dates of the bond are February 1 and August 1. The number of total months of interest expense incurred for the year ended December 31, 2020 should be? 10) The condition for bond issued at a premium is that the market rate is less than the effective interest rate of interest. (True/False) 11) Presented below is the information related to Colorado Corporation: Common Stock, $5 par, 200,000 shares issued and outstanding Pald-In-Capital in Excess of Par-Common Stock $3 per share Preferred 6% Stock, $50 par, 100,000 shares issued and outstanding Paid-in-Capital in Excess of Par-Preferred Stock $5 per share Retained Earnings $600,000 Accumulated loss from comprehensive income $50,000 The total stockholder's equlty of Colorado Corporation is? 12) Red Company issued 100,000 shares of $10 par common stock. Three months later Red acquired 7.000 shares of its own common stock at $12 per share. Six months later Red sold 4,000 of these shares at $16 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 4,000 treasury shares, Red should credit Treasury Stock at