ANSWERS TO QUESTIONS
Dividends payable of $2,375,000 will be reported as a current liability [(1,000,000 – 50,000) X $2.50]. 2. Bonds payable of $25,000,000 and interest payable of $3,000,000 ($100,000,000 X 12% X 3/12) will be reported as a current liability. Bonds payable of $75,000,000 will be reported as a long-term liability. ................
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