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ment due December 31, 2017. The prevailing rate of interest for a note of this type is 9%. he present value of the note at

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ment due December 31, 2017. The prevailing rate of interest for a note of this type is 9%. he present value of the note at 9% was s2884,000 at January 1, 2017, Assuming that Leary has a calendar year end fiscal year, how much interest expense should Leary Company report for the year ended December 31, 2018 related to this note? 8. Long Co. issued 100,000 shares of $10 par common stock for $1,200,000. A year later Long acquired 16,000 shares of its own common stock at $15 per share. Three months later Long sold 8,000 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, prepare the journal entry to record the sale of the 8,ooo treasury shares: Account Debit Credit 9. Stinson Corporation owned 40,000 shares of Matile Corporation. These shares were purchased in 2014 for $360,000. On November 15, 2018, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder On that date, when the market price of Matile was $28 per share, there were 360,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? Gain Net Reduction in b. $o c. $684,000 d. $684,000 324,000 $1,008,00o 144,000 s 324,000 10. On July 1, 2017 the Diamond Bottle Company sold $400,ooo in long-term bonds to the Silver Jewelry Company. The bonds will mature in 10 years and have a stated interest rate of 9%. The market rate at time of issuance was 12%. Therefore, the bonds sold for S332396. The bonds pay interest annually on June 30 of each year. The bonds are to be accounted for under the effective interest method. Below is a partial bond amortization schedule. Cash Interest Amortization Carrying Expense Value 332,196 336,060 340,387 6/30/2018 36,000 39.8643.864 6/30/2019 36,00040,327 6/30/2020 36,000 40,8464.846 If Diamond buys back the bonds at 101 plus accrued interest on 12/31/ 2019, what is the gain /loss reported on the retirement of gain or loss). bonds? (be sure to include the $ amount and

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