Shark Co. sold a $10,000, 8%, 5-year bond for $10,853 yield 6%. Interest is paid semi-annually. The first interest payment entry will record interest payable of

1. $300.00
2. $434.12
3. $400.00
4. $325.59

A machine that cost $40,000 and had accumulated depreciation of $ 30,000 was traded in on a new machine, which had an estimated 20-year life and a cash price of $50,000. If a $7,000 trade-in allowance was received on the old machine, the new machine should be valued at:

1. $10,000
2. $50,000
3. $40,000
4. $47,000

Please explain in detail :)