Keenan Company Has Had Bonds Payable of $20,000 Outstanding for Several

question 60

Multiple Choice

Keenan Company has had bonds payable of $20,000 outstanding for several years.On January 1, 2018, there was an unamortized premium of $2,000 with a remaining life of 10 years, Keenan's parent, Ross, Inc., purchased the bonds in the open market for $19,000.Keenan is a 90% owned subsidiary of Ross.The bonds pay 8% interest annually on December 31.The companies use the straight-line method to amortize interest revenue and expense.Compute the consolidated gain or loss on a consolidated income statement for 2018.

• A) $3,000 gain.
• B) $3,000 loss.
• C) $1,000 gain.
• D) $1,000 loss.
• E) $2,000 gain.

Identify the types of legal resources available for free on the Internet.

Recognize fee-based legal research services.

Understand the impact of digital tools on legal research effectiveness.

Differentiate between free and fee-based legal resources.

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Definitions:

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, and established brand loyalty.

Competitive Price-searcher Market

A market structure where firms have some control over the pricing of their products because their products are differentiated, but there is intense competition due to low entry barriers.

Economic Profit

The total revenue of a business minus both explicit and implicit costs.

Long-run Equilibrium

A state in which all firms in a market are making normal profits, with no incentive for entry or exit, indicating a stable market condition.