Renewable Energy issued 5-year, 7% bonds with a par value of $800,000. The market rate when the bonds were issued was 6.5%. Renewable received $808,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: Multiple Choice $28.800 $27,200 $56,000 $28,000 $55.200 Eastline Corporation has $190,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. Eastline also has $590,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $39,000. This dividend should be distributed as follows: Multiple Choice $9,750 preferred: $29.250 common $11,400 preferred: $27,600 common $19,500 preferred: $19,500 common $21,000 preferred: $18,000 common $0 preferred: $39,000 common On January 1. Clabber Company issues bonds dated January 1 with a par value of $360,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8%. Using the present value factors below, the issue (selling) price of the bonds is: Present Value of an Annuity (series of payments) 2.6243 5.3286 2.5771 5.2421 Present value of 1 (single sum) 0.8163 0.8135 0.7938 0.7903 3 6 3 6 7.08 3.58 8.08 4.08 Multiple Choice $284,508 $66,050