At the end of Cary's first 3. year, the total contributed capital amounted to: total a. $40,000 b. $90,000 c. $100,000 d. $190,000 10. When treasury stock is purchased for cash at more than its par value, what is sthe effect on total shareholders' equity under each of the following methods: Cost Method a. Increase b. Decrease c. No effect d. No effect Par Value Methocd Increase Decrease Decrease No effect 11. For the issuer of a 10 year term bond, the amount of amortization using effective interest method would increase each year if the bond was sold at: Discount Premium a. No b. Yes .No d. Yes No Yes Yes No 12. When the issuer of the bond exercises the call provision to retire the bonds, the excess of the cash paid over the carrying amount of the bonds should be recognized separately as a(n): a. Expense b. Prior period adjustment C. Loss from continuing operations d. Loss from discontinued operations. the sum of the par value of the bonds and the fair value of the warrants, the excess should be credited to: a. Additional Paid -in capital b. Retained Earnings c. Premium on Bonds Payable d. Detachable Stock Warrants Outstanding. 13. When the cash proceeds from a bond issued with detachable stock purchase warrants exceed related to the debtor's financial difficulties, grants a concession to the debtor that it would not have otherwise considered. 14. T, F. A troubled debt restructuring occurs when a creditor for economic or legal reasons 15. F. A debtor must disclose some of the characteristics of its long term debt but most of it must be disclosed in the Notes To The Financial Statements