A corporation's primary rationale for a stock split is to:

A.Reduce the per share market price of the Common Stock.

B.Increase Paid-In Capital.

C.Increase the par value of the Common Stock.

D.Increase Retained Earnings.

Baja Fresh issued $150,000 of 10-year, 8% bonds for 102 on January 1, 2000.Interest is payable on January 1 and July 1.Baja Freshuses the straight-line method of amortization.The amount of interest expense recorded on July 1, 2000, is:

A.$12,000

B.$6,000

C.$6,150

D.$5,850

Panera Bread issued $100,000 of 8-year, 9% bonds for 98 on January 1, 2000.Interest is payable on January 1 and July 1.Panera Breaduses the straight-line method of amortization.The amount of cash repaid to bondholders on January 1, 2008, is:

A.$100,000

B.$99,000

C.$98,000

D.$102,040

Chipotlerecently issued $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 12%.Chipotleutilizes the straight-line method for amortizing bond discount/premium.Which of the following statements is true?

A.The amount of the annual interest expense is computed at 10% of the bond-carrying amount at the beginning of the year.

B.The amount of the annual interest expense gradually decreases over the life of the bonds.

C.The amount of unamortized discount decreases from its balance at issuance date to a zero balance at maturity.

D.The amount of unamortized premium decreases from its balance at issuance date to a zero balance at maturity.

When the market rate of interest for bonds is higher than a bond's stated rate of interest, the bond will sell at:

A.A premium

B.A discount

C.Its face value

D.Its maturity value