Question 5 1 pts Dana Co.'s officers' compensation expense account had a balance of $224,000 at December 31, 20X4 before any appropriate year-end adjustment relating to the following: No salary accrual was made for December 30-31, 20X4. Salaries for the two-day period totaled $3,500. 20x4 officers' bonuses of $62,500 were paid on January 31, 20X5. In its 20X4 income statement, what amount should Dana report as officers' compensation expense? $290,000 $286,500 $227,500 $224,000 Question 6 1 pts On November 1, year 1, Beni Corp. was awarded a judgment of $1,500,000 in connection with a lawsuit. The decision is being appealed by the defendant, and it is expected that the appeal process will be completed by the end of year 2. Beni's attorney feels that it is highly probable that an award will be upheld on appeal, but that the judgment may be reduced by an estimated 40%. In addition to footnote disclosure, what amount should be reported as a receivable in Beni's balance sheet at December 31. year 1? $1,500,000 O $ 900,000 $ 600,000 $0 Question 7 1 pt If the payment of employees' compensation for future absences is probable, the amount can be reasonably estimated, and the obligation relates to rights that accumulate, the compensation should be Accrued if attributable to employees' services not already rendered. o Accrued if attributable to employees' services already rendered. Accrued if attributable to employeest services, whether already rendered or not. Recognized when paid. Kent, Co. filed a voluntary bankruptcy petition on August 15, 20X5 and the statement of affairs reflects the following accounts: Book Value Current Value Assets: Assets pledged with fully secured creditors Assets pledged with partially secured creditors Free assets $ 300,000 180,000 420,000 $ 900,000 $370,000 120,000 320,000 $810,000 ========== Liabilities: Liabilities with priority Fully secured creditor's Partially secured creditors Unsecured creditors $ 70,000 260,000 200.000 540,000 $1,070,000 ====== Assume that the assets are converted to cash at the estimated current values and the business is liquidated. What amount of cash will be available to pay unsecured non- priority claims? $240.000 $280.000 $320.000 $360,000