Use the Following Information for Questions

question 35

Multiple Choice

Use the following information for questions
On May 1, 2016, Marly Co.issued $500,000 of 7% bonds at 103, which are due on April 30, 2026.Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marly's ordinary shares $15 par value, were attached to each $1,000 bond.The bonds without the warrants would sell at 96.On May 1, 2016, the fair value of Marly's shares was $35 per share and of the warrants was $2.
-On May 1, 2016, Marly should record bonds payable at

• A)$515,000.
• B)$500,000.
• C)$480,000.
• D)$494,400.

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Definitions:

Large-Sample Z

A statistical test used to determine if two population means are different, applicable when the sample size is large.

Null Hypothesis

A hypothesis that suggests no significant difference or effect, proposed to be tested against an alternative hypothesis.

Random Sample

A subset of individuals chosen from a larger population, where each individual has an equal chance of being selected, used to infer population characteristics.

Small Bag

A diminutive container used for carrying personal items or purchases, typically hand-held or shoulder-mounted.