8. A corporation issues $300,000,8%,5-year bonds on January 1, 2020 for $312,600. Interest is paid annually on January 1 . If the corporation uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized in December 31, 2020's adjusting entry is a. $21,480. b. $24,000. c. $26,520. d. $2,520. 9. If the market rate of interest is lower than the contractual interest rate, the bonds will sell at a. face value. b. a premium. c. a discount. d. an unknown amount. 10. The two ways that a corporation can be classified by purpose are a. general and limited. b. profit and not-for-profit. c. state and federal. d. publicly held and privately held. 11. Dividends in arrears are dividends on a. cumulative preferred stock that have been declared but have not been paid. b. non-cumulative preferred stock that have not been declared for a given period of time. c. cumulative preferred stock that have not been declared for a given period of time. d. common dividends that have been declared but have not yet been paid. 12. Which of the following represents the largest number of common shares? a. Treasury shares. b. Issued shares. c. Outstanding shares. d. Authorized shares