Sebastians Sporting Goods (SSG) issued $100,000 bonds with an annual coupon rate of 4% when the market rate was 5%. Interest is paid annually. If these bonds have a five-year life until maturity, what is the total amount of cash that SSG will pay bondholders?

Select one:

a. $100,000

b. $105,000

c. $120,000

d. $20,000

Levine Corporation purchased a machine on July 1, 2016 for $550,000. The machine was estimated to have a useful life of 10 years and a salvage value of $50,000. Levine depreciates the machine using the straight-line method. On January 1, 2020, management revised its estimate of the machine's useful life and determined that it would have a remaining useful life of four years (until December 31, 2023). Levine did not change the estimated salvage value. Using this revised estimate, what is the amount of depreciation expense in 2020?

Select one:

a. $87,500

b. $93,750

c. $75,000

d. $81,250