The Merchant Company issued 10-year bonds on January 1. The 9% bonds have a face value of $97,000 and pay interest every January 1 and July 1. The bonds were sold for $116,993 based on the market interest rate of 7%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of 54365 55.265 53.395 54,095 Assuming a 360-day year, proceeds of $44,137 were received from discounting a 545,266, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was O. 11.73 Ob 99% Oc 11.225 Od. 79% A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is Os 595,000 Ob. 720,000 Oc. $125,000 Od 5845.000 Equipment with a cost of $86,566, an estimated residual value of $6,869, and an estimated life of 15 years was depreciated by the straight-line method for 7 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 4 years and the residual value changed to zero. The depreciation expense for the current and future years is Os S4A 35 Ob. 33.291.60 c. 337.1919 d. 312.34352 The Designer Company issued 10-year bonds on January 1. The 6% bonds have a face value of $752,000 and pay interest every January 1 and July 1. The bonds were sold for $624,995 based on the market interest rate of 7%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record interest expense (round to the nearest dollar) of O 518,750 Ob. 526.120 Oc. 523.500 Od 520.075