The Following Information Was Taken from the 2011 Financial Statements $\bullet$

question 15

Multiple Choice

The following information was taken from the 2011 financial statements of Dunlop Corporation:

During 2011
$\bullet$ A $450,000 payment was made to retire bonds payable with a face amount of $500,000.
$\bullet$ Bonds payable with a face amount of $200,000 were issued in exchange for equipment.
In its statement of cash flows for the year ended December 31, 2011, what amount should Dunlop report as proceeds from issuance of bonds payable?

• A)$1,500,000
• B)$1,750,000
• C)$1,800,000
• D)$2,200,000

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Definitions:

Different Smells

The perception of odors, which is processed by the olfactory system in the brain.

Colors

Visual perceptions that result from the way an object reflects or emits light into the eye, categorized in terms such as hue, saturation, and brightness.

Trichromatic Theory

A theory of color perception that proposes three mechanisms in the visual system, each sensitive to a certain range of wavelengths; their interaction is assumed to produce all the different experiences of hue.

Visual System

The part of the central nervous system that allows organisms to process visual detail, including the eyes, optic nerves, and brain regions involved in visual perception.