QUESTION 1 The premium on bonds payable is a contra liability account. True False QUESTION 2 A bond issue with a face amount of $500,000 bears interest at the rate of 10%. The current market rate of interest is 11%. These bonds will sell at a price that is: A Equal to $500,000 B. More than $500,000 C. Less than $500,000 D. The answer cannot be determined from the information provided QUESTION 3 A temporary difference originates in one period and reverses, or turns around, in one or more later periods. True False