1. when an instrument is called before maturity, less OID will have been recognized at the time of call than would have been recognized had the actual term been the original term

true

false

Trade discounts are usually considered adjustments to the purchase price and are available to the purchaser without regard to the timeliness of payment

true

false

Megair Corp. manufactures two types of airplanes: small, general aviation planes that require approximately 6 months to finish & large jet aircrafts sold to airlines that require two years to complete. Megair maintains an inventory of the small planes but manufactures the large planes to contract specification. Megair must use the long-term contract accounting rules for both types of planes.

true

false