True OR False (2 points each) 1) When selling a fixed asset, there is a loss if the selling price is larger than the book value. 2) An asset may be disposed of by discarding or retiring the asset, selling the asset, or exchanging or trading the asset for another asset. 3) On the date of an asset's disposal, depreciation expense shouldn't be recognized for the time period since the last depreciation adjustment. 4) Treasury stock refers to previously outstanding stock that is bought back from stockholders by the issuing company 5) Bonds differ from common stock in many ways. Bonds are owned by creditors, are liabilities with limited lives, require interest and principal payments, have deductible interest expenses, and provide a leverage opportunity. 6) If the stated rate of the bond is smaller than the market rate, the bond will sell at a premium. If the stated rate of the bond is less than the market rate, the bond will sell at a discount. 7) When bonds are issued at face value, the cash and bonds payable accounts are affected. 8) A note receivable is a written promise to pay and usually includes an interest component 9) The payee of a note is the specific person or business to whom a note is payable. 10) The formula for calculating the interest on notes is: Interest - Principal X Rate X Time