90. On January 1 of Year 1, Congo Express Airways issued $3,770,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,440,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $11,000 every six months. After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:

• $3,593,950.

• $3,462,000.

• $4,209,950.

• $4,078,000.

• $3,330,050.

107. Mohr Company purchases a machine at the beginning of the year at a cost of $33,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 5 years with a $6,000 salvage value. The book value of the machine at the end of year 2 is:

• $5,400.

• $27,000.

• $22,200.

• $10,800.

• $16,200.

111. Mohr Company purchases a machine at the beginning of the year at a cost of $27,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 8 years with a $5,000 salvage value. Depreciation expense in year 2 is:

• $2,750.

• $3,375.

• $6,750.

• $0.

• $22,000

112. Martin Company purchases a machine at the beginning of the year at a cost of $140,000. The machine is depreciated using the double-declining-balance method. The machines useful life is estimated to be 4 years with a $11,600 salvage value. Depreciation expense in year 4 is:

• $70,000.

• $11,800.

• $8,750.

• $5,900.

• $32,350