On 1 June 2017,Smith Services Issued $33,000 of 7% Debentures

question 10

Multiple Choice

On 1 June 2017,Smith Services issued $33,000 of 7% debentures that mature in five years.They were sold at a premium,for a total of $34,375.The debentures pay semiannual interest payments on 30 June and 31 December of each year.On 31 December 2017,how much is the total amount paid to investors?

• A)$2406.25
• B)$1203.13
• C)$2310.00
• D)$1155.00

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Definitions:

UCC Statute of Limitations

The time limit established by the Uniform Commercial Code within which a lawsuit must be filed to resolve various types of disputes, notably in commercial transactions.

Self-Destructs

An act of causing oneself or something to fail or to be destroyed, often implying a mechanism or choice leading to self-ruin.

Third-Party Claim

A claim made by a defendant against someone who is not already a party to the lawsuit, asserting that this "third party" is actually liable for the plaintiff's damages.

Privity of Contract

A principle indicating that only the parties involved in a contract have the rights and obligations arising from it.