Question 1 1 pts Bake Co.'s trial balance included the following at December 31, Year 1: Accounts payable $ 80,000 Bonds payable, due Year 2 300,000 Discount on bonds payable 15.000 Deferred income tax liability 25,000 The deferred income tax liability is not related to an asset for financial accounting purposes and is expected to reverse in Year 2. What amount should be included in the current liability section of Bake's December 31, Year 1 balance sheet? $365.000 $390,000 O $395.000 $420,000 Question 2 1 pts Hudson Hotel collects 15% in city sales taxes on room rentals, in addition to a $2 per room, per night, occupancy tax. Sales taxes for each month are due at the end of the following month, and occupancy taxes are due 15 days after the end of each calendar quarter. On January 3, 20X5 Hudson paid its November 20X4 sales taxes and its fourth quarter 20X4 occupancy taxes. Additional information pertaining to Hudson's operations is: 20X4 October November December Room Rentals $100,000 110,000 150,000 Room Nights 1.100 1,200 1.800 What amounts should Hudson report as sales taxes payable and occupancy taxes payable in its December 31, 20X4 balance sheet? Sales taxes Occupancy taxes $39.000 $6.000 $39.000 $8.200 $54,000 $6,000 $54,000 $8,200 Question 3 1 pts Martin Pharmaceutical Co. is currently involved in two lawsuits. One is a class-action suit in which consumers claim that one of Martin's best selling drugs caused severe health problems. It is reasonably possible that Martin will lose the suit and have to pay $20 million in damages. Martin is suing another company for false advertising and false claims against Martin. It is probable that Martin will win the suit and be awarded $5 million in damages. What amount should Martin report on its financial statements as a result of these two lawsuits? OSO O $5 million income O $15 million expense. $20 million expense. Question 4 1 pts Choose the correct statement about international accounting standards as they relate to contingent liabilities and similar items. A provision that has a reasonably possible chance of requiring the outflow of benefits is treated as a contingent liability O Provisions are recognized only when there is greater than a 90% probability of an outflow of benefits occurring. O A recognized provision is a contingent liability, O A provision for which it is probable that an outflow of benefits will be required is recognized, even if it is not of estimable amount