Question 19 of 30 A company issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that

None of these answers are correct

the effective yield or market rate of interest exceeded the stated (nominal) rate.

the nominal rate of interest exceeded the market rate.

no necessary relationship exists between the two rates.

the market and nominal rates coincided. Question 20 of 30 A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2014. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,144. Using effective-interest amortization, how much interest expense will be recognized in 2014?

$1,568,332

$1,568,498

$780,000

$1,560,000

None of these are correct Question 21 of 30 SVU Corporation has $2,500,000 of short-term debt it expects to retire with proceeds from the sale of 85,000 shares of common stock. If the stock is sold for $20 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities?

$2,500,000

$800,000

None of these answers are correct.

$1,700,000

$0 Question 22 of 30 Under the effective-interest method of bond discount or premium amortization, the periodic interest expense is equal to

the stated (nominal) rate of interest multiplied by the face value of the bonds.

the market rate of interest multiplied by the face value of the bonds.

the market rate multiplied by the beginning-of-period carrying amount of the bonds.

the stated rate multiplied by the beginning-of-period carrying amount of the bonds.

None of these answers are correct Question 23 of 30 The residual interest in a corporation belongs to the

common stockholders

preferred stockholders

creditors

management

none of these answers are correct Question 24 of 30 SVU Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. SVU's lawyer states that it is probable that SVU will lose the suit and be found liable for a judgment costing SVU anywhere from $1,600,000 to $8,000,000. However, the lawyer states that the most probable cost is $4,800,000. As a result of the above facts, SVU should accrue

no loss contingency but disclose a contingency of $1,600,000 to $8,000,000.

None of these answers are correct.

a loss contingency of $4,800,000 and disclose an additional contingency of up to $3,200,000.

a loss contingency of $4,800,000 but not disclose any additional contingency.

a loss contingency of $1,600,000 and disclose an additional contingency of up to $6,400,000.