each period The cash interest payment A. Face a S. the stated interest rate the market interest rate Carrying value t D. Camying valse times the stated intcrest rate. rate of 10%, face value of SS0000, and ass i bond is 12%, whis 9. Califomia Coasters issues a bond with a stated interest are made semi-annually. The market rate for this type of years Interest payments the issue price of the bond? A. $83920 B. 550,000 C 553,605 D. $46,320 o. A S500,000 bond issue sold for $510,000. Therefore, the bonds A. Sold at a premium because the stated interest rate was higher than the market rate. B. Sold for the $500,000 face amount plus $10,000 of accrued interest. C. Sold at a discount because the stated interest rate of was higher than the market rate. D. Sold at a premium because the market interest rate was higher than the stated rate. 11. C&C Company purchased a S500,000 tract of land that is intended to be the site of a new office complex. C&C incurred the additional costs and realized salvage proceeds as follows: Demolition of existing building on site S75,000 Title insurance and attorney fees Property taxes paid and $7,000 covered the period after the purchase date) Proceeds from the sale of scrap from demolition 10,000 What would be the capitalized cost of the land? 12,000 (5,000 of this amount was for back taxes A. $587,000 B. $600,000 C $580,000 D. $590,000 12. Which of the following is not a reason why some companies lease rather than buy? A. Leasing may allow you to borrow with little or no down payment B. Leasing can improve the balance sheet by reducing long-term debt. C. Leasing can lower income taxes D. Leasing transfers the title to the lessee at the beginning of the lease