Part I. (20 points total, 2 points each). Write down your best answer questions in the box provided. Question Answer Question Answer Question Ans 0.2 0.3 Q.7 Q.5 Q.8 I. Asset retirement obligations are a. present value of future resource usage b. obligations to replace old buildings and equipment with new assets c. sinking funds for bonds or other long-term liabilities d. long-term legal requirements to dismantle used property Which of the following terms is associated with recording a contingent I a. Possible. b. Avoidable. c. Remote. 2. iability? Probable. - A company has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the range is a better estimate than any other amount. Under U.S. GAAP, what amount of loss contingency should be accrued? a the maximum amount of the range b. the midpoint amount of the range c. the minimum amount of the range d. the average amount of the range 3. To record an asset retirement obligation (ARO), the cost associated with the ARO is a. expensed in the year of purchase. b. included in the carrying amount (i.e., book value) of the related long-lived asset. c. ignored until it happens in the future. d. capitalized over the asset's useful life. 4. Xenia Corporation issued 3,000 term bonds with a face value of S1,000 each and no ditional features for $2,800,000. The bonds'selling price indicated that the bonds were paying interest that was a. lower than the market rate b. the rate the bond investors wanted c. equal to par value d. higher than the market rate 5