28) Providing a monetary rebate program for purchasing a product: A) Is accounted for similarly to product warranties. B) Creates a contingent liability for the seller at the time of sale. C) Creates an expense for the seller in the period of sale. D) All these answer choices are correct. 29) 29) Orange Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in that country. If expropriation is reasonably possible, a loss contingency should be: A) Disclosed and accrued as a liability. B) Accrued as liability but not disclosed. C) Disclosed but not accrued as a liability. D) Neither accrued as a liability nor disclosed. 30) 30) On January 31, 2018, B Corp. issued $600,000 face value, 12% bonds for $600,000 cash. The bonds are dated December 31, 2017, and mature on December 31, 2027. Interest will be paid semiannually on June 30 and December 31. For how many months will there be interest expense for the year ended September, 30, 2018? A) 6 months. B) 12 months. C) 9 months. D) 8 months. 31) 31) Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Decrease in Balance Payment Cash 300,000 300,000 300,000 300,000 345,639 347,464 349,363 45,639 47,464 49,363 Outstanding Balance 8,640,967 8,686,606 8,734,070 8,783,433 What is the stated annual rate of interest on the bonds? A) 8%. B) 4%. C) 6%. D) 3%. 32) 32) Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Decrease in Balance Payment Cash 300,000 300,000 300,000 300,000 Outstanding Balance 8,640,967 8,686,606 8.734.070 8,783,433 345,639 347,464 349,363 45,639 47,464 49.363 What is the interest expense on the bonds for the year ended December 31, 2019? A) $100,700. B) $700,700. C) S347,464. D) $600,000. 33) 33) Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Effective Interest Cash Decrease in Balance 300,000 300,000 300,000 300,000 345,639 347,464 349,363 45,639 47,464 49.363 Outstanding Balance 8,640,967 8,686,606 8,734,070 8,783,433 What is the book value of the bonds as of December 31, 2019? A) $8,783.433. B) $8,734,070. C) $8,686,606. D) $8,834,770. 34) 34) Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Payment Cash Decrease in Balance 300,000 300,000 300,000 300,000 345,639 347,464 349,363 45,639 47,464 49,363 Outstanding Balance 8,640,967 8,686,606 8,734,070 8,783,433 What would be the total interest cost of the bonds over their full term? A) $6,000,000. B) $7,359,033. C) $1,359,033. D) $4,640,967. 35) 35) Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Cash Decrease in Balance Payment Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 What would be the total interest expense recognized for the bond issue over its full term? A) $9,487,747. B) $8,000,000. C) $11.487,747. D) 56.512.253