MC Qu. 140 A corporation issued...

A corporation issued 8% bonds with a par value of $1,140,000, receiving a $48,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:

Multiple Choice:

$0.

$11,400 gain.

$11,400 loss.

$40,200 gain.

$40,200 loss.

MC Qu. 141 On August 1...

On August 1, a $49,200, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid each year on July 31. The present value of an annuity factor for 3 years at 7% is 2.6243. The present value of a single sum factor for 3 years at 7% is 0.8163. The payment each July 31 will be:

Multiple Choice:

$16,400.00.

$18,747.74.

$17,200.00.

$16,800.00.

$2,347.74.

MC Qu. 143 On July 1, Shady Creek Resort borrowed...

On July 1, Shady Creek Resort borrowed $460,000 cash by signing a 10-year, 9.5% installment note requiring equal payments each June 30 of $73,262. What amount of interest expense will be included in the first annual payment?

Multiple Choice:

$43,700

$430,438

$46,000

$73,262

$29,562