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1. On December 1, Martin Company signed a $5,000, 3-month, 6% note payable, with the principle plus interest due on March 1 of the following year. What amount of interest expense is accrued at December 31 on the note? A.$300 B.$25 C.$50 D.$0 E.$75
2. The Discount on Bonds Payable account is:A A contra liabilityB A liabilityC A contra expenseD A contra equityE An expense
3. When a bond sells at a premium:A The contract rate is equal to the market rate.B The contract rate is above the market rate.C It means that the bond is a zero coupon bond.D The bond pays no interest.E The contract rate is below the market rate.
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If management decides to buy part I14 from the outside supplier rather than to continue making the part, what would be the annual impact on the company's overall net operating income?
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