On September 1, 2021, Espresso Corp. issued a $1,800,000, 12% note to Big 5 Bank, payable in three equal annual principal payments of $600,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1, 2022. At December 31, 2022, Espresso should record accrued interest payable of

Select one:

a. $ 44,000

b. $ 48,000

c. $ 66,000

d. $ 72,000

On January 1, 2020, Raptors Corp. changed its inventory valuation method from weighted-average cost to FIFO for financial statement and income tax purposes, to make their reporting as reliable and more relevant. The change resulted in a $ 900,000 increase in the beginning inventory at January 1, 2020. Assume a 25% income tax rate. The cumulative effect of this accounting change reported for the year ended December 31, 2020 is

Select one:

a. $900,000

b. $225,000

c. $0

d. $675,000

On January 1, 2020, Jeep Corp. issued $ 2,000,000, 5% bonds, which mature on January 1, 2027. The bonds were issued for $2,120,045 to yield 4%. Jeep uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2020, the adjusted balance in the Bonds Payable account should be

Select one:

a. $ 2,104,847

b. $ 2,000,000

c. $ 2,120,045

d. $ 2,135,243

Presented below is information related to Sheep Farm Ltd. for calendar 2020. The corporation uses IFRS.

Defined benefit obligation, Jan 1$ 720,000

Fair value of plan assets, Jan 1700,000

Current service cost90,000

Contributions to plan125,000

Actual and expected return on plan assets56,000

Past service costs (effective Jan 1)10,000

Benefits paid to retirees96,000

Interest (discount) rate9%

The fair value of the plan assets at December 31, 2020 is

Select one:

a. $ 819,000

b. $ 805,000

c. $ 875,000

d. $ 785,000