Use the Following Information to Answer the Question(s)below

question 13

Multiple Choice

Use the following information to answer the question(s) below.
Pfadt Inc.had $600,000 par of 8% bonds payable outstanding on January 1,2011 due January 1,2015 with an unamortized discount of $12,000.Senat is a 90%-owned subsidiary of Pfadt.On January 2,2011,Senat Corporation purchased $150,000 par value of Pfadt's outstanding bonds for $152,000.The bonds have interest payment dates of January 1 and July 1.Straight-line amortization is used.
-Bond Interest Receivable for 2011 of Pfadt's bonds on Senat's books was

• A)$5,400.
• B)$6,000.
• C)$10,800.
• D)$12,000.

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Definitions:

Punishment

A consequence applied to an individual or animal in response to an undesirable behavior, with the intent of decreasing or eliminating that behavior.

Instinctive Drift

Tendency for an animal’s behavior to revert to genetically controlled patterns.

Genetic Blueprint

A metaphor for the complete set of genes that an organism inherited, which determines its biological characteristics and development.

Maturation

The process of becoming mature; encompasses the physical, mental, and emotional developments that occur as a person ages.