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.

Comprehend the effect of asset improvements on depreciation and asset valuation.

Understand the disclosure requirements for property, plant, and equipment in financial statements.

Understand the principles of recording exchanges involving nonmonetary assets.

Comprehend various accounting methods for oil and gas properties.

---

Definitions:

Genetic Factors

Elements within an organism's genetic makeup that influence its physical and behavioral traits.

Intelligence

The ability to learn, understand, and apply knowledge, solve problems, and adapt to new situations.

Changeable Intelligence

The concept that an individual's intellectual capacities can grow and change with time and experience.

Polygenetic

Related to or involving many genes, explaining the inheritance of complex traits that are affected by multiple genetic factors.