ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 27

10) On October 1, 2014 Macklin Corporation issued 5%, 10year 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.

11) Which of the following taxes does not represent a common
employee payroll deduction?

12) Which of the following is an example of a contingent
liability?

13) Sawyer Company self-insures its property for fire and storm
damage. If the company were to obtain insurance on the
property, it would cost them $1,500,000 per year. The company
estimates that on average it will incur losses of $1,200,000 per
year. During 2014, $525,000 worth of losses were sustained.
How much total expense and/or loss should be recognized by
Sawyer Company for 2014?