Reference no: EM132928074

Problem 1: How would the amortization of premium on bonds payable affect each of the following?

Carrying value of bond and Net income

a. Increase increase

b. Decrease decrease

c. Increase decrease

d. Decrease increase

Problem 2: Which statement characterizes an operating lease?

a. the lessor transfers title of the underlying asset to the lessee for the duration of the lease term.

b. the lessor records depreciation and lease revenue.

c. the lessee records depreciation and interest

d. the lessee records a lease obligation

Problem 3: When convertible bond is not converted but paid at maturity

a. the amount allocated to equity is recorded as a loss.

b. the amount allocated to equity is recorded as a gain.

c. the carrying amount of the bond equal to face amount is derecognized

d. a gain or loss is recorded for the difference between the carrying amount of the bond and the present value of the cash flows.