ing , the footnote to the financial statements describing this event shou ld include all of the following information EXCEPT 44 ) Stock dividends distributable should be classified on the 45 ) Which of the following items is a current liability ? 46 ) A company offers a cash rebate of $ 1 on each $ 4 package of light bulbs sold during 2007 . Historically , 10 % of customers mail in the reb ate form . During 2007 , 4,000,000 packages of light bulbs are sold , an d 140,000 $ 1 rebates are mailed to customers . What is the rebate expe nse and liability , respectively , shown on the 2007 financial statements dated December 31 ? 47 ) A company offers a cash rebate of $ 1 on each $ 4 package of batte ries sold during 2007 . Historically , 10 % of customers mail in the rebat e form . During 2007 , 6,000,000 packages of batteries are sold , and 21 0,000 $ 1 rebates are mailed to customers . What is the rebate expense and liability , respectively , shown on the 2007 financial statements dat ed December 31 ? 48 ) A company buys an oil rig for $ 1,000,000 on January 1 , 2007 . Th e life of the rig is 10 years and the expected cost to dismantle the rig a t the end of 10 years is $ 200,000 ( present value at 10 % is $ 77,110 ). 1 0 % is an appropriate interest rate for this company . What expense sho uld be recorded for 2007 as a result of these events ? 49 ) A contingency can be accrued when 50 ) Mark Ward is a farmer who owns land which borders on the rightofway of the Northern Railroad . On August 10 , 2007 , due to the admitte d negligence of the Railroad , hay on the farm was set on fire and burn ed . Ward had had a dispute with the Railroad for several years concer ning the ownership of a small parcel of land . The representative of the Railroad has offered to assign any rights which the Railroad may hav e in the land to Ward in exchange for a release of his right to reimburs ement for the loss he has sustained from the fire . Ward appears incline d to accept the Railroad ’ s offer . The Railroad ’ s 2007 financial stateme nts should include the following related to the incident : 51 ) Which of the following contingencies need NOT be disclosed in t he financial statements or the notes thereto ? 52 ) The covenants and other terms of the agreement between the issue r of bonds and the lender are set forth in the