A plant asset’s useful life is the length of time it is productively used in a company’s operations.

Mortgage bonds are backed only by the good faith and credit of the issuing company.

Callable bonds can be exchanged for a fixed number of shares of the issuing corporation’s common stock.

When the contract rate of a bond is greater than the market rate on the date of issuance, the bond sells at a discount.

When an asset is purchased (or disposed of) at a time other than the beginning or the end of an accounting period, depreciation is recorded for part of a year so that the year of purchase or the year of disposal is charged with its share of the asset’s depreciation.

The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee’s pay. Assume that an employee earned total wages of $2,900 in the current period and had cumulative pay for prior periods of $5,800. What is the amount of unemployment taxes the employer must pay on this employee’s wages for the current period?

A plant asset’s useful life is the length of time it is productively used in a company’s operations.

Debt guarantees are usually disclosed as a contingent liability.

Sinking fund bonds:

When an asset is purchased (or disposed of) at a time other than the beginning or the end of an accounting period, depreciation is recorded for part of a year so that the year of purchase or the year of disposal is charged with its share of the asset’s depreciation.