Companies that have borrowed $200M (face value) in bonds at a stated rate of 10% at 1.05 are required to pay bondholders $21M annually.

Group of answer choices

True

False

Question 2

An asset's book value is $18,000 on December 31, after five full years of depreciation. Assuming the asset is sold at that point for $15,000, the company should record:

Group of answer choices

A loss on sale of $3,000

A gain on sale of $3,000

A loss on sale of $12,000

Neither a gain nor a loss is recognized on this transaction

A gain on sale of $12,000