Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Weller Company issued bonds with a $220,000 face value, a stated rate of interest of 9.50%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 7.50%. Interest is paid annually on December 31. Assuming Weller issued the bonds for $236,340, what is the carrying value of the bonds on the December 31, Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice O $226,084 O $233.166 O $229,753 O $240,900Required information [The following information applies to the questions displayed below.) On January 1, Year 1, Weller Company issued bonds with a $220,000 face value, a stated rate of interest of 9.50%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 7.50%. Interest is paid annually on December 31. Assuming Weller issued the bond for $236,340, what is the amount of interest expense that will be recognized during Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice O $20,900 O $17,726 O $17,231 O $24.569Required information [The following information applies to the questions displayed below.] On January 1, Year 1, Mahoney Company borrowed $177,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $40,950. What is the amount of principal repayment included in the payment made on December 31, Year 1? Multiple Choice O $14.160 O $26,790 O $37.674 O $40,950Kier Company issued $540,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 5-year term to maturity. The bonds have a 6.00% stated rate of interest and interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1? Multiple Choice O $32,400 and Zero O Zero and $32,400 O $32,400 and $32,400 O Zero and ZeroRequired information [The following information applies to the questions displayed below.] On January 1, Year 1, Hanover Corporation issued bonds with a $49,000 face value, a stated rate of interest of 9%, and a 5-year term to maturity. The bonds were issued at 99. Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year. The journal entry used to record the issuance of the bond and the receipt of cash would be: (Round your answer to the nearest whole dollar amount.) Multiple Choice O Cash 49,000 Bonds Payable 49,000 O Cash 49,000 Discount on Bonds Payable 98 Bonds Payable 48, 902 O Cash 48, 902 Discount on Bonds Payable 98 Bonds Payable 49,000 O Cash 48, 510 Discount on Bonds Payable 490 Bonds Payable 19,000Company A and Company B are identical in all regards except that during Year 1 Company A borrowed $35,000 at an interest rate of 10%. In contrast, Company B obtained financing by acquiring $35,000 from sale of common stock. Company B agreed to pay a $3,500 cash dividend each year. Both companies are in a 30% tax bracket. Which company would show the greater retained earnings at the end of Year 1, and by what amount? Multiple Choice O Company A's retained earnings would be higher by $3,500. O Company B's retained earnings would be higher by $2,450. O Company A's retained earnings would be higher by $1,050. O Both would show the same retained earnings.On January 1, Year 1, Brown Co. issued bonds with a face value of $117,000, a stated rate of interest of 11%, and a 20-year term to maturity. The bonds were issued at face value. If Bluefield's tax rate is 40%, what is the after-tax cost of borrowing related to these bonds for Year 1? Multiple Choice O $5,148 O $7.722 O $12,870 O $18,018