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