The following information pertains to a fire insurance policy in effect at December 31, 2020, covering Aspen Company's inventory: Face amount of policy $400,000 Deductible per claim 25,000 Amount of annual premium 2,000 Aspen's inventory averages $500,000 uniformly throughout the year. Aspen's income tax rate is 25%. How much of a contingent liability should Aspen accrue at December 31, 2020, to cover possible future fire losses? O A) $-0- B) $18,75 O C) $23,000 OD) $75,000 The following events all took place after the balance sheet date of December 31, 2020, but before the issuance of the financial statements on March 1, 2021, of Tannenbaum Inc. The amounts indicated for each event are considered material to the company's financial statements. 1. A customer reported a bankruptcy providing evidence that the December 31, 2020, accounts receivable balance of $22,000 will not be collectible. 2. The company issued 1,000 shares of common stock for $40,000. 3. An inventory loss due to a flood damage in 2021 was estimated to be $14,000. 4. Tannenbaum Inc. settled a legal dispute for $250,000 related to an employee accident that took place in 2018. Which of the preceding items (if any) should be considered for recognition on the 2020 financial statements? O A) Item 1 only B) Items 1 and 4 only C) Items 1, 3, and 4 only. OD) All of the items should be recognized in the 2020 financial statements. O E) None of the items should be recognized in the 2020 financial statements, but they should all be disclosed in the notes accompanying the financial statements Old Style Inc. authorized and issued $100,000, 10-year, 5% bonds on January 1, 2020. Interest is paid annually on December 31, and the principal is due upon maturity. The bonds are redeemable at the option of Old Style Inc. prior to October 1, 2028, at a specified rate. The bonds are backed by specific assets of the company. The bonds issued by Old Style Inc. are best described as: A) Corporate, Debenture, Serial, Callable B) Municipal, Secured, Term, Convertible C) Corporate, Secured, Term, Callable D) Municipal, Secured, Serial, Callable