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Tequile we erective-interest method to be used to amortize bond premiums and discounts. Question 6 (1 point) The cumulative feature of preferred shares requires that

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Tequile we erective-interest method to be used to amortize bond premiums and discounts. Question 6 (1 point) The cumulative feature of preferred shares requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders. limits the amount of cumulative dividends to the par value of the preferred shares. enables a preferred shareholder to accumulate dividends until they equal the stated value of the shares and receive the shares in place of the cash dividends. means that the shareholder can accumulate preferred shares until they are equal to the stated value of common shares, at which time they can be converted into common shares. Question 7 (1 point) The current (commonly used) accounting treatment for premiums and coupons requires that the costs should not be recorded at all. be recorded at the maximum possible redemption cost in the year of the related sales. be recorded at the total estimated redemption cost the year of the related sales. be recorded in the year(s) that the redemption is expected to occur. Question 8 (2 points) At December 31, 2020, the 12% bonds payable of Leather Corp. had a carrying value of s 312,000. The bonds, which had a face value of $ 300,000, were issued at a premium to yield 10%. Leather uses the effective interest method of amortization of bond premium. Interest is paid on June 30 and December 31. On June 30, 2021, Leather retired the bonds at 104 plus be recorded in the year(s) that the redemption is expected to occur. Question 8 (2 points) At December 31, 2020, the 12% bonds payable of Leather Corp. had a carrying value of S 312,000. The bonds, which had a face value of $ 300,000, were issued at a premium to yield 10%. Leather uses the effective-interest method of amortization of bond premium. Interest is paid on June 30 and December 31. On June 30, 2021, Leather retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is S 3,720. $ 2,400. $ 12,000. Oso. SUS Question 9 (1 point) The term used for bonds that are backed by collateral is secured bonds. callable bonds. debenture bonds. convertible bonds. Question 10 (2 points) On January 1, 2020, Campton Ltd. sold five year, 6% bonds with a face value of $ 40 Interest will be paid semi-annually on June 30 and December 31. The bonds were sol 417,505 to yield 5%. Using the effective-interest method of amortization of bond disa

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