Use the Following Information for Questions

question 13

Multiple Choice

Use the following information for questions.
On January 1, 2017, Marianne Corp. purchased $50,000, of Robin Ltd.'s 4%, 10-year bonds for $48,000, since the market interest rate was approximately 4.5%. The bonds pay interest on January 1 and July 1. Marianne has a calendar year end, and classified the bonds as long-term investments. The fair value on December 31, 2017 was $48,500. Marianne sold the bonds on January 2, 2018 for $48,500.
-The entry for the receipt of interest on July 1, 2017 is

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Definitions:

Sleeper Effect

A phenomenon where a message that was initially discounted or ignored gains persuasiveness over time.

Message Source

The originator of a communication or information that is being conveyed to an audience.

Match-up Hypothesis

The theory suggesting that the effectiveness of an endorsement depends on the compatibility between the endorser and the product or brand being endorsed.

Star Power

The influence or attractiveness a celebrity has, which is often used in marketing and endorsements to attract customers.