A bond would be sold at a discount because

Group of answer choices

the market rate of interest is higher than the coupon or stated rate of interest on the actual bond.

none of these options is correct.

the market rate of interest is lower than the coupon or stated rate of interest on the actual bond.

the market rate of interest is the same as the coupon or stated rate of interest on the actual bond.

Flag question: Question 14

Question 144 pts

On January 1, 2020, Smith Enterprises issued $100,000 of five-year 9% bonds at face value. Smith is required to pay $25,709 on December 31 of each of the five years. The amount of the payment allocable to principal (as a reduction of the principal balance) on December 31, 2020 is

Group of answer choices

$20,000

$ 9,000

not determinable.

$16,709

Flag question: Question 15

Question 154 pts

Travis Corporation issues $100,000 of 6% bonds at 96 on January 1, 2020. The bonds have a maturity date of December 31, 2024 (a five-year duration). Travis amortizes its bond premiums or discounts using the straight-line method. Total interest expense presented on the income statement during 2020 is

Group of answer choices

$5,200

$6,000

$7,000

$6,800

Flag question: Question 16

Question 164 pts

Based on the scenario presented in Question 15, the actual cash payment made by Travis for interest during 2020 is

Group of answer choices

$6,000

$6,800

$7,000

$5,200

Flag question: Question 17

Question 174 pts

A company has issued 1,000,000 shares of its $10 par value common stock for $15. As a result of this transaction, the amount recorded as additional paid-in-capital (i.e., excluding the amount recorded as common stock) is

Group of answer choices

$15,000,000

$ 0

$5,000,000

$10,000,000

Flag question: Question 18

Question 184 pts

All of the following attributes apply to preferred stock compared to common stock, except

Group of answer choices

enhanced voting rights

priority with respect to dividend payments

a fixed and pre-determined rate of dividends.

priority with respect to a settlement value in the event of a liquidation.

Flag question: Question 19

Question 194 pts

A company declares $60,000 of dividends in 2020 for the first time since 2017. (Cumulativepreferred shareholders were fully paid all dividends as of December 31, 2017 but received no dividend in 2018 or 2019.) With $200,000 of 8% cumulative preferred stock and 100,000 shares of common stock, the amount of the 2020 dividend declaration available to common stockholders is

Group of answer choices

$60,000

$44,000

$ 0

$12,000

Flag question: Question 20

Question 204 pts

When a public corporation repurchases some of its previously issued shares, those shares are referred to as

Group of answer choices

treasury shares, which are considered to be issued and outstanding.

treasury shares, which are considered to be neither issued nor outstanding.

treasury shares, which are still considered to be issued but are no longer considered to be outstanding.

treasury shares, which are no longer considered to be issued, but are considered to be outstanding.