ACC 304 All Assignments ACC 304 All Assignments | Page 4

The service period is for three years beginning January 1, 2015. As a
result of the option granted to Telfer, using the fair value method,
Evans should recognize compensation expense for 2015 on its books in
the amount of
12) Presented below is information related to Hale Corporation:
Common Stock, $1 par
$4,500,000
Paid-in Capital in Excess of Par―Common Stock 550,000
Preferred 8 1/2% Stock, $50 par
2,000,000
Paid-in Capital in Excess of Par―Preferred Stock 400,000
Retained Earnings
1,500,000
Treasury Common Stock (at cost)
150,000
The total paid-in capital (cash collected) related to the common stock is
13) On October 1, 2014 Macklin Corporation issued 5%, 10-year bonds
with a face value of $4,000,000 at 104. Interest is paid on October 1
and April 1, with any premiums or discounts amortized on a straight-
line basis.
Bond interest expense reported on the December 31, 2014 income
statement of Macklin Corporation would be