Carly Corporation issued $300,000 of 30-year, 8% bonds at 105 on January 1, 2022. Interest is payable semiannually on June 30th and December 31st. The straight-line method of amortization is to be used. After 11 years, what is the carrying value of the bonds? Select one: O a. $305,500 O b. $302,250 O c. $312.250 O d. $309.500 O e $313.250 During 2019. Gum Co. introduced a new product carrying a two-year assurance-type warranty against defects. Gum Co. uses the expense warranty approach. The estimated warranty costs related to dollar sales are 6%. Sales and actual warranty expenditures for the years ended December 31, 2019 and 2020 are as follows 2019 2020 Sales $150,000 250.000 $400.000 Actual Warranty Expenditures $2,250 7500 59 750 What amount should Gum report as warranty expense on its 2019 income statement? Select one: O a. $7,500 O b. $1,500 O c $9,000 O d. $14.250 O e. $24,000 3 Annual accounting caused by an asset retirement obligation (ARO) will normally include: Not yet wered Points out of 2.00 Flag rition Select one O a. Revaluing the liability to the actual expected cost using an expected value technique. Ob Revaluing the liability equal to the sum of the net undiscounted future cash flows associated with the ARO O Increasing the carrying amount of the related long-lived asset O d. Increasing the ability for the ARO to reflect the interest expense On December 1, 2026, Mason Corp. sold $800,000 of its ten-year, 8% term bonds dated November 1, 2026. The bonds were sold to yield 10%, with total proceeds of $700,000 plus accrued interest. Interest is paid every May 1 and November 1 Wot yet ed Points out of 00 What amount should Mason report for interest payable in its December 31, 2026 balance sheet? Rag question Select one: O $5,333 Ob $16.000 O c. $10,667 d. $20,000 5 For the issuer of a ten-year bond, the amount of interest expense using the effective interest method would change each year if the bond were sold at wwered Select one: O a. A discount or a premium is out of 30 Flag urbon O b. A discount, but not a premium O c. A premium, but not a discount O d. Neither a discount nor a premium