Key Company Has Had Bonds Payable of $20,000 Outstanding for Several

question 8

Multiple Choice

Key Company has had bonds payable of $20,000 outstanding for several years. On January 1, 2021, there was an unamortized premium of $2,000 with a remaining life of 10 years, Key's parent, Peele, Inc., purchased the bonds in the open market for $17,000. Key is a 90% owned subsidiary of Peele. The bonds pay 8% interest annually on December 31. The companies use the straight-line method to amortize interest revenue and expense. Compute the consolidated gain or loss on a consolidated income statement for 2021.

• A) $3,000 gain.
• B) $3,000 loss.
• C) $5,000 gain.
• D) $5,000 loss.
• E) $2,000 gain.

Understand the key findings and implications of the Hawthorne studies.

Recognize the importance of management listening to their employees.

Identify the beliefs and principles of effective leadership according to Peter Drucker.

Differentiate between intrinsic and extrinsic factors contributing to job satisfaction.

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Definitions:

Repressive Censoring

The act of suppressing unwelcome thoughts, feelings, or memories from consciousness, as a defense mechanism.

Parent-child Interaction

The dynamic and reciprocal communication and actions between a parent and child, which are crucial for the child's social, emotional, and cognitive development.

Rogers

Carl Rogers, an influential American psychologist known for founding the humanistic approach to psychology and developing client-centered therapy.

Humanistic Psychology

A perspective that emphasizes looking at the whole individual and stresses concepts such as free will, self-efficacy, and self-actualization.