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On January 1, 2014, Victor Corporation sold a $1,460,000, 10 percent bond issue (8 percent market rate). The bonds were dated January 1, 2014, pay interest each June 30 and December 31, and mature in five years.
Record the interest payment on June 30, using straight-line amortization.
Show how the bonds payable should be reported on the June 30, 2014, balance sheet and income statement.
Assuming that Susan has a marginal tax rate of 30%, the net effect of her having this hobby will be to increase her total tax liability by:
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Jenson Company began the year with retained earnings of $250,000. During the year, the company recorded revenues of $350,000, expenses of $275,000, and paid dividends of $30,000. What was Jenson’s retained earnings at the end of the year?
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