$11.$ Auerbach Incorporated issued $7\%$ bonds on October $1,2024.$ The bonds have a maturity date of September $30,2034$ and a face value of $$325$ million. The bonds pay interest each March $31$ and September $30,$ beginning March $31,2025.$ The effective interest rate established by the market was $9\%.$

How much cash interest does Auerbach pay on March $31,2025?$

Multiple Choice

$$11\mathrm{.}38$ million

$$14\mathrm{.}63$ million

$$29\mathrm{.}25$ million

$$22\mathrm{.}75$ million

$12.$ TMC issued $$40$ million of its $9\%$ bonds on April $1,2024$ at $99,$ reflecting a market rate of interest of $14\%,$ plus accrued interest. The bonds are dated January $1,2024,$ and mature on December $31,2043.$ Interest is payable semiannually on June $30$ and December $31.$ What amount did TMC receive from the bond issuance?

Multiple Choice

$$40\mathrm{.}50$ million

$$38\mathrm{.}70$ million

$$39\mathrm{.}60$ million

$$40\mathrm{.}90$ million

$13.$ Blue Company recorded a right$-$of$-$use asset of $$110,000$ in a $10-$year operating lease. Payments of $$18,678$ are made annually at the end of each year. The interest rate charged by the lessor was $11\%$ and was known by Blue. The balance in the right$-$of$-$use asset after two years will be:

Multiple Choice

$$110,000.$

$$135,256.$

$$96,120.$

$$96,844.$

$14.$ During $2024,$ Marquis Company was encountering financial difficulties and seemed likely to default on a $$230,000,9\%,$ four$-$year note dated January $1,2022,$ payable to Third Bank. Interest was last paid on December $31,2023.$ On December $31,2024,$ Third Bank accepted $$200,000$ in settlement of the note. Ignoring income taxes, what amount should Marquis report as a gain from the debt restructuring in its $2024$ income statement?

Multiple Choice

$$0$

$$12,675$

$$30,000$

$$50,700$

$15.$ On January $1,2024,$ Wellburn Corporation leased an asset from Tabitha Company. The asset originally cost Tabitha $$380,000.$ The lease agreement is an operating lease that calls for four annual payments beginning on January $1,2024,$ in the amount of $$43,000.$ The other three remaining payments will be made on January $1$ of each subsequent year. Which of the following journal entries should Tabitha record on January $1,2024?$

General Journal

Debit Cash $43,000$

Credit Deferred revenue $43,000$

General Journal

Debit Cash $43,000$

Credit Rent revenue $43,000$

General Journal

Debit Cash $43,000$

Credit Rent expense $43,000$

General Journal

Debit Cash $43,000$

Credit Lease receivable $43,000$