Crystal Lodging Recorded $330,000 in Revenues,$247,500 in Expenses,and $45,000 of Dividends

question 55

Multiple Choice

Crystal Lodging recorded $330,000 in revenues,$247,500 in expenses,and $45,000 of dividends for the year.The company began the year with total assets of $285,000 and stockholder's equity of $130,500. Suppose that liabilities increased by $90,000 and stockholders' equity increased by $37,500.What would be the change in Crystal Lodging's assets?

• A)$168,000 increase
• B)$127,500 increase
• C)$154,500 increase
• D)$52,500 increase

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Definitions:

Premium on Bonds Payable

The amount by which the bond's issue price exceeds its face value, reflecting the cost of issuing debt at an interest rate lower than the market rate.

Discount on Bonds Payable

The difference between the par (or face) value of a bond and its lower issuing price, representing an additional cost of borrowing for the issuer.

Straight-Line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life.

Discount at Issuance

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.