1. when an instrument is called before maturity, less OID will have been recognized at the time of call than would have been recognized had the actual term been the original term

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false

Trade discounts are usually considered adustments to the purcahse price and are available to the purcahser without regard to the timeliness of payment

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false

Megair Corp. manufactures two types of airplanes: small, general aviation planes that require approximately 6 months to finish & large jet aircrafts sold to airlines that require two years to complete. Megair maintains an inventory of the small planes but manufactures the large planes to contract specification. Megair must use the long-term contract accounting rules for both types of planes.

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false