If bonds payable are issued at a discount, the contractual interest rate is a) higher than the market rate of interest. At the end of its first year, the trading securities portfolio consisted of the following securities Cost Fair Value Magnum Corp $38.000 $40,000 Spencer Inc 49.000 43.000 $87,000 $83.000 b) lower than the market rate of interest. The unrealized loss to be recognized is c) equal to the market rate of interest. a) $2,000 d) changed to reflect the market rate of interest Caldwell Company issued 8%, 10-year bonds that pay interest semiannually. The market rate of interest for such bonds is 10%. In computing the market price of these bonds, the appropriate interest rate is b) $6,000 c) $4.000 a) 10%. d) none of the above. Ob) 8%. A plant asset acquired on October 1, 2017, at a cost of $400,000 has an estimated useful life of 10 years. The salvage value is estimated to be $40,000 at the end of the asset's useful life. c) 5% Instructions d) 4%. Determine the depreciation expense for the first two years using: (a) the straight-line method. (b) the double-declining-balance method