5.( TCO C) During 2011, Bond Company purchased the net assets of May Corporation for $ 1,000,000. On the date of the transaction, May had $ 300,000 of liabilities. The fair value of May ' s assets when acquired were as follows: 6.( TCO D) Which of the following is a condition for accruing a liability for the cost of compensation for future absences?( Points: 5) 7.( TCO D) Which of the following taxes does not represent a payroll deduction a company may incur?( Points: 5) 8.( TCO D) Assume that a manufacturing corporation has( 1) good quality control,( 2) a one-year operating cycle,( 3) a relatively stable pattern of annual sales, and( 4) a continuing policy of guaranteeing new products against defects for three years that has resulted in material but rather stable warranty repair and replacement costs. Any liability for the warranty( Points: 5) 9.( TCO D) Jenkins Corporation has $ 2,500,000 of short-term debt it expects to retire with proceeds from the sale of 75,000 shares of common stock. If the stock is sold for $ 20 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities?( Points: 5) 10.( TCO D) Tender Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40 % chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $ 500,000. What is the required journal entry as a result of this litigation?( Points: 5) 11.( TCO D) If bonds are initially sold at a discount and the straightline method of amortization is used, interest expense in the earlier years will( Points: 5) 12.( TCO D) When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the issuer will be( Points: 5) 13.( TCO D) Feller Company issues $ 20,000,000 of ten-year, 9 % bonds on March 1, 2010 at 97 plus accrued interest. The bonds are dated January 1, 2010, and pay interest on June 30 and December 31. What is the total cash received on the issue date?( Points: 5)