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 )
14 . ( TCO D ) A company issues $ 20,000,000 , 7.8 %, 20-year bonds to yield 8 % on January 1 , 2010 . Interest is paid on June 30 and December 31 . The proceeds from the bonds are $ 19,604,145 . What is interest expense for 2011 , using straight-line amortization ? ( Points : 5 )
15 . ( TCO D ) On January 1 , Patterson Inc . issued $ 5,000,000 , 9 % bonds for $ 4,695,000 . The market rate of interest for these bonds is 10 %. Interest is payable annually on December 31 . Patterson uses the effective-interest method of amortizing bond discount . At the end of the first year , Patterson should report unamortized bond discount of ( Points : 5 )
( TCO C ) Sisco Co . purchased a patent from Thornton Co . for $ 180,000 on July 1 , 2008 . Expenditures of $ 68,000 for successful litigation in defense of the patent were paid on July 1 , 2011 . Sisco estimates that the useful life of the patent will be 20 years from the date of acquisition .
( TCO C ) Fred ’ s Company is considering the write-off of a limited life intangible asset because of its lack of profitability . Explain to the