Choose the appropriate letter to match the term and its definition. Not all definitions will be used. Accrued liability, Loan covenant, Issue price, Face value, Line of credit, Public debt offering, Security, Contingent liability. a. Bond features that allow the issuer to repay the loan early. b. A prearranged agreement that allows a company to borrow at will up to a limit. c. This item is reported as a contra asset account. d. The amount that the lender actually pays for a bond. e. The cost of issuing a bond. f. Debt features that, if violated, allow the lender to revise loan terms. g. The total amount of money that a company owes in debt. h. The amount a company must repay creditors when a bond matures. i. These are liabilities that have been incurred during the period but not yet paid. j. When a company borrows money by issuing bonds in the financial markets. k. A bond feature that allows a creditor to seize assets if debt is not properly repaid. l. This type of liability is uncertain; it exists only if some other condition occurs.

(30 total points) suppose a firm’s production function is given by q = l1/2*k1/2. the marginal product of labor and the marginal product of capital are given by: mpl = 1/ 2 1/ 2 2l k , and mpk = 1/ 2 1/ 2 2k l . a) (12 points) if the price of labor is w = 48, and the price of capital is r = 12, how much labor and capital should the firm hire in order to minimize the cost of production if the firm wants to produce output q = 18?

when taxes are levied on transactions, irrespective of the party they are levied on, a. the government can absorb some of the surplus, but also creates a social loss since some of the wealth creating transactions are discouraged b. the government can absorb all the producer surplus from the transactions as revenue c. the government can absorb all of the surplus (producer and consumer) d. the government can absorb all the consumer surplus from the transactions as revenue

Flounder supply company, a newly formed corporation, incurred the following expenditures related to land, to buildings, and to machinery and equipment. abstract company’s fee for title search $1,066 architect’s fees 6,499 cash paid for land and dilapidated building thereon 178,350 removal of old building $41,000 less: salvage 11,275 29,725 interest on short-term loans during construction 15,170 excavation before construction for basement 38,950 machinery purchased (subject to 2% cash discount, which was not taken) 112,750 freight on machinery purchased 2,747 storage charges on machinery, necessitated by noncompletion of building when machinery was delivered 4,469 new building constructed (building construction took 6 months from date of purchase of land and old building) 994,250 assessment by city for drainage project 3,280 hauling charges for delivery of machinery from storage to new building 1,271 installation of machinery 4,100 trees, shrubs, and other landscaping after completion of building (permanent in nature) 11,070 instructions determine the amounts that should be debited to land, to buildings, and to machinery and equipment. assume the benefits of capitalizing interest during constructionexceed the cost of implementation. indicate how any costs notdebited to these accounts should be recorded.