Name Date Class: 31. On January 1, Y car l. Zero Comp any obtained a $52,000, 4 year, 6 5% installment note from Regional Bank. The note requires annual payn carrying amount in the amortization table for this installment note will be equal to a. $26,000 b.$27,635 e. $21,642 d. $28,402 payments of S15,179, beginning on December 31, Year 1. The December 31, Year 2 00. If the 32. Bonds Payable has a balance of $1,000000 and Discount on Bonds Payable has a balance of S15,5 issuing corporation redeems the bonds at 98.5, what is the amount of gain or loss on redemption? a. $500 loss b. $15,500 loss c. $15,500 gain d. $$00 gain 33. Bonds with a face amount of$1,000,000 are sold at 98. The entry to record the issuance is a. Cash 1,000,000 Premium on Bonds Payable Bonds Payable 20,000 980,000 980,000 20,000 b. Cash Premium on Bonds Payable Bonds Payable 1,000,000 980,000 20,000 e. Cash Discount on Bonds Payable Bonds Payable 1,000,000 d. Cash 980,000 Bonds Payable 980,000 34. A corporation issues for cash $1,000,000 of 10%, 20-ycar bonds, interest payable annually, at a time when the market rate of interestis12 %. The straight line method s adopted for the amortization of bond discount premium. Which of the following statements is true a The amount of the annual interest expense is computed at 10% of the bond carrying amount at the or beginning of the year. b. The amount of the annual interest expense gradually decreases over the life of the bonds. c. The amount of unamortized discount decreases from its balance at issuance date to a zero balance at maturity d. The bonds will be issued at a premium 35. If the market rate of interest is 7% the price of 6% bonds paying interest semiannually with a face value of $500,000 will be a. oqual to $500,000 b. greater than $500,000 e. less than $300,000 d. greater than or less thn $$00,000, depanding on the maturity dstic of the bonds ing ou the mahurly daie of the bonds Paga 7