A corporation issues for cash $9,000,000 of 8%, 30-year bonds, interest payable semiannually. The amount received for the bonds will be

a.present value of 30 annual interest payments of $360,000, plus present value of $9,000,000 to be repaid in 30 years

b.present value of $9,000,000 to be repaid in 30 years, less present value of 60 semiannual interest payments of $360,000

c.present value of 60 semiannual interest payments of $360,000, plus present value of $9,000,000 to be repaid in 30 years

On January 1, Year 1, Zero Company obtained a $52,000, four-year, 6.5% installment note from Regional Bank. The note requires annual payments of $15,179, beginning on December 31, Year 1. The December 31, Year 2 carrying amount in the amortization table for this installment note will be equal to

a.$26,000

b.$27,635

c.$28,402

d.$21,642

The balance in Premium on Bonds Payable

a.should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the effective interest rate method

b.would be added to the related bonds payable on the balance sheet

c.should be reported on the balance sheet as a deduction from the related bonds payable

d.should be reported in the Paid-in capital section of the balance sheet

d.present value of 30 annual interest payments of $720,000

A corporation issues for cash $9,000,000 of 8%, 30-year bonds, interest payable semiannually. The amount received for the bonds will be a. present value of 30 annual interest payments of $360,000, plus present value of $9,000,000 to be repaid in 30 years b. present value of $9,000,000 to be repaid in 30 years, less present value of 60 semiannual interest payments of $360,000 c. present value of 60 semiannual interest payments of $360,000, plus present value of $9,000,000 to be repaid in 30 years d. present value of 30 annual interest payments of $720,000