Homework answers / question archive / 1) Bondi Ltd has outstanding debentures with a face value of $50,000

1) Bondi Ltd has outstanding debentures with a face value of $50,000

Finance

Share With

1) Bondi Ltd has outstanding debentures with a face value of $50,000. If Bondi redeems the debentures at 108% of its face value it must record:

a.  A gain of $4,000.

b. A gain of $54,000.

c. A gain of $50,000.

d. A loss of $50,000.

e. A loss of $4,000.

2) A plant asset was purchased on 1 January for $30,000 with an estimated residual value of $6,000 at the end of its useful life. The current year's depreciation expense is $3,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $15,000. The remaining useful life of the plant asset is:

a. 10 years.

b. 8 years.

c. 5 years.

d. 3 years.

e. 0 years.