All of the following are payroll costs that are expenses of the employer except O A. Employee income taxes O B. Canada Pension Plan contributions OC. Workers' Compensation Plan premiums OD. Employment Insurance premiums Interest payable is classified as O A. a current liability O B. an asset O c. a long-term liability OD. a contra asset. Laser Corporation issues 50, $1,000 maturity value, 10% bonds at 102.5. The journal entry includes a O A. debit to Cash for $50,000 OB. credit to Bonds Payable for $51,250 O C. debit to Discount on Bonds Payable for $1,250 OD. credit to Premium on Bonds Payable for $1,250 Starmount Company Ltd. sold an old copy machine for $3,200. The old copy machine cost $9,000 and had accumulated amortization totalling $6,500. Which journal entry could be used to record the sale of the copy machine? O A. Cash 3,200 6,500 Accumulated Amortization Office Equipment Office Equipment Gain on Sale of Office Equipment 9,000 700 OB. Cash 3,200 5,800 Loss on Sale of Office Equipment Office Equipment 9,000 3,200 9,700 Office Equipment Accumulated Amortization Office Equipment 9,000 OD. Cash 3,200 3,300 Loss on Sale of Office Equipment Office Equipment 6,500 On January 1, 2019, Button Manufacturing Company purchased a machine for $39,980, and expects to use the machine a total of 32,000 hours over the next four years. Button set the residual value on the machine at $3,500. Button used the machine 6,000 hours in 2019 and 7,200 hours in 2020. What is the amortization expense for 2019, if Button uses double-declining-balance amortization? O A. $9,120 O B. $9,995 OC. $18,240 OD. $19,990 Lex Enterprises is considering alternative ways of raising capital for the purchase of a new factory. One alternative suggested by the controller is the issuance of bonds. After discussions with an underwriter, Lex decides to issue $5,000,000 of 7%, 10-year bonds dated May 1, 2020, with interest payment dates of November 1 and May 1. Lex's year-end is December 31. Lex uses the effective-interest method of amortization. Assuming the bonds were issued on May 1, 2020, at 107.44 when the market interest rate was 6%, and the company uses the effective interest method of amortization, the semiannual interest payment on November 1, 2020, would include a O A. debit to interest expense for $161,160 OB. debit to interest expense for $175,000 O c. credit to premium on bonds payable for $13,840 O D. debit to discount on bonds payable for $13,840 On January 1, 2019, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2019 and 12,000 in 2020. What is the amortization expense for 2020 if the company uses the straight-line amortization? Round to the nearest whole dollar as needed. O A. $9,000 O B. $13,333 OC. $6,000 OD. $10,000 Which amortization method generally results in the greatest amortization expense in the first full year of an asset's life? O A. Straight-line O B. Units-of-production OC. Double-declining-balance O D. Either straight-line or double-declining-balance Redding Corporation issued $400,000 of 10%, five-year bonds. The bonds are dated and sold on February 1, 2020. Interest payment dates are February 1 and August 1. The market interest rate is 8% and the bonds are sold for $432,442. The company uses the effective-interest method of amortization. When preparing the effective interest method of amortization schedule for this bond, how does the interest expense compare to the semiannual interest payment? O A. The interest expense should be lower than the semiannual interest payment OB. The interest expense is equal to the semiannual interest payment. O C. The interest expense should be higher than the semiannual interest payment. OD. The relationship is undeterminable with the information given