8. If Thunder Bay acquired a 20% interest in Fort William on December 31, 2019 for $45,000, and during 2018 Fort William reported net income of $25,000 and paid a total cash dividend of $10,000, applying the equity method would give a debit balance in the Investment in Fort William Corp. account at the end of 2020 of a) $37,000. b) $45,000. c) $48,000. d)$50,000 Use the following information to answer questions 9 and 10 On January 1, 2019, on their issue date, Diogenes Inc. purchased 996, $200,000, 10-year bonds. Interest is paid annually on December 31. Diogenes uses the amortized cost model and the effective-interest method for amortizing premium or discount. The current market rate was 10% for bonds. On December 31, 2019, the bonds have a market value of $185,000 9. What is the amount paid for the bond on January 1, 2019 a)5178,711 5 b) $200,000 c)S187,711 d) $185,000 10. How much interest would be recorded in 2019? a)$12,289 2 b)$18,000 c) $20,000 4 d) $18,771 Cr. Unrealized Holding Gain on FV-Ni Investments 1,365 d) No adjustment is required. 8. If Thunder Bay acquired a 20% interest in Fort William on December 31, 2019 for $45,000, and during 2018 Fort William reported net income of $25,000 and paid a total cash dividend of $10,000, applying the equity method would 53 give a debit balance in the Investment in Fort William Corp. account at the end of 2020 of 54 a) $37,000. 55 b) $45,000 66 c)$48,000. 67 d) $50,000 70 Use the following information to answer questions 9 and 10 On January 1, 2019, on their issue date, Diogenes Inc. purchased 9%, $200,000, 10-year bonds. Interest is paid annually on December 31. Diogenes uses the amortized cost model and the effective interest method for am discount. The current market rate was 10% for bonds. On December 31, 2019, the bonds have a market value of 71 5185,000 72 73 9. What is the amount paid for the bond on January 1, 2019 74 a) S178,711 75 b) S200,000 76 c5187,711 77 d) $185,000 79 10. How much interest would be recorded in 2019? 81 a) 512,289