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Question 9 (1 point) If the fair value of a company's bonds payable is greater than the book value of the company's bonds payable, this

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Question 9 (1 point) If the fair value of a company's bonds payable is greater than the book value of the company's bonds payable, this usually implies that interest rates have decreased since the bonds were issued. True False Question 10 (1 point) Portable Paperie purchases new manufacturing equipment on January 1, 2020. The company agrees to pay the seller over a four-year period: $20,000 on December 31, 2020, $20,000 on December 31, 2021, $20,000 on December 31, 2022 and $20,000 on December 31, 2023. If the company's borrowing costs are 7%, they should value the purchased PP&E at when they record the purchase on January 1, 2020. $88,799 $27,210 $34,276 $67,744 Question 11 (1 point) A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from the bond issue. The journal entry to record the bond issue will be: Dr. Cash 5,000,000 Dr. Premium 500,000 Cr. Bonds Payable 5,500,000 Dr. Cash 5,500,000 Cr. Discount 500,000 Cr. Bonds Payable 5,000,000 Dr. Cash 5,000,000 Dr. Discount 500,000 Cr. Bonds Payable 5,500,000 Dr. Cash 5,500,000 Cr. Premium 500,000 Cr. Bonds Payable 5,000,000 Question 12 (1 point) A company issues 10-year bonds with a face value of $4,000,000 and a stated annual interest rate of 5% on January 1, 2020. The bonds will pay interest semiannually on June 30 and December 31. The annual market rate of interest on the date of issue is 4%. How much Cash will the company receive when they issue the bonds? $3,688,217 $4,000,000 $4,324,436 $4,327,029

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