Limited issued $500,000 of 5%, 10-year bonds at a premium on July 1. The bonds pay interest semiannually.Approximately how much cash did receive upon issuance?

		$495,000
		$487,500
		$500,000
		$505,000

Collins Co. issued $200,000 of 10 year zero-coupon bonds on January 1 at a price of $150,000. How much total interest will be recorded by Collins co. as interest expense over the 10 year life of the bonds?

		$60,000
		$50,000
		$10,000
		There is insufficient information to calculate this number.

The following information relates to Wilson, Inc.s equipment lease with an inception date of January 1: Fair value of equipment at lease inception, $91,200Lease term, 4 years. Economic life of property, 5 years. Implicit interest rate, 6%.Annual lease payment due on December 31, $25,600. Present value of the lease payments, $88,707. The equipment reverts back to the lessor at the end of the lease term. By how much does the lease liability decrease during the first year?

		$ 5,322
		$20,128
		$20,278
		$25,600

On January 1, Year 1, Anderson & Company (lessor) and Dillon, Inc. (lessee) agreed to an 8-year lease for equipment that has an economic life of 10 years. Dillon, Inc. made its first annual payment on January 1, Year 2 for $13,000. Thereafter, seven more annual payments are due. Title reverts to Dillon, Inc. at the end of the lease term. The equipment has a fair value at the lease inception date of $98,400. The discount rate is 2%. Which one of the lease conditions below is not met?