A company issued 6-year, 8% bonds with a par value of $350,000. The market rate when the bonds were issued was 7.5%. The company received $353,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:

Multiple Choice

• $27,708.

• $13,708.

• $14,000.

• $28,000.

• $14,292.

A corporation reports the following year-end balance sheet data. The company's working capital equals:

Cash	$	44,000		Current liabilities	$	79,000
Accounts receivable		59,000		Long-term liabilities		39,000
Inventory		64,000		Common stock		104,000
Equipment		149,000		Retained earnings		94,000
Total assets	$	316,000		Total liabilities and equity	$	316,000

Multiple Choice

• $88,000

• $167,000

• $79,000

• $316,000

• $198,000