Lerner Inc. issued bonds several years ago for more than face value. The bonds had a face value of $100,000 and pay interest annually at 9% on 12/31 each year. The market rate on the date of issue was 8%. Assume the carrying value of the bonds throughout 20X2 is 104,000. Lerner prepares annual financial statements at 12/31 each year. How much interest expense will Lerner recognize in 20X2 related to these bonds? $8, 320 $8,000 $9,000 $9, 360 Lerner Inc. issued bonds several years ago for more than face value. The bonds had a face value of $100,000 and pay interest annually at 9% on 12/31 each year. The market rate on the date of issue was 8%. Assume the carrying value of the bonds throughout 20X2 is 104,000. Lerner prepares annual financial statements at 12/31 each year. What will be the carrying value of the bond on the 12/31/20X2 balance sheet? $103, 320 $103, 640 $103,000 $100, 680 At the time of maturity, a bond's carrying value will be equal to its face value. True False For each of the transactions that follow, indicate whether the cost will be capitalized or expensed by Action Corporation. (Will it be initially treated as an asset/asset addition or will it expensed immediately.) Action paid $50,000 in salaries for research and development on a process in hopes to A. Capitalize patent in another year. Expense Action paid $10,000 to have new equipment transported to its business location. Action pays $15,000 to replace a broken part on equipment in the factory. This puts the equipment back into normal operating condition, but does not extend the life of the equipment. Action pays $8,000 to have a new engine added to its truck. This will extend the life of the truck