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NEW QUESTION: 1
Abbey Company issued $1,000,000 of 10-year bonds with a contractual interest rate of LIBOR + 2%.
The interest rate is to be reset annually. Bondholders will receive interest annually. The LIBOR for the year 2000 is 5.5%. The entry to record interest expense for the year 2000 is
A. Interest expense (debit) 75,000; Discount on bonds payable (credit) 20,000; Accrued interest payable
(credit) 55,000
B. Interest expense (debit) 55,000; Discount on bonds payable (debit) 20,000; Accrued interest payable
(credit) 75,000
C. Interest expense (debit) 75,000; Accrued interest payable (credit) 75,000
Answer: C
Explanation:
Floating rate debt is almost always issued at par, so there is no premium or discount to be amortized. Interest expense is debited for $75,000 which is the face value of $1 million * the interest rate of 7.5% (the LIBOR of 5.5% plus 2%).

NEW QUESTION: 2
Click the exhibit button.

If router R2 redistributes the IS-IS route to 192.168.3.0/24 into OSPF, router R3 preference of these two routes? Choose two answers.
A. The IS-IS Level 2 external preference
B. The IS-IS Level 1 internal preference
C. The OSPF internal preference
D. The IS-IS Level 1 external preference
E. The OSPF external preference
F. The IS-IS Level 2 internal preference
Answer: B,E

NEW QUESTION: 3
You are designing a fabric interconnect solution operating in END host MODE and connected to the upstream Cisco nexus 7000 series Switches for LAN and SAN traffic.
Which statement about the setup is true?
A. FDISCs
B. All PLOGLS from the nodes that are connected to the end host fabric interconnect switch must be translated to FDISCs
C. All PLOGLS from the nodes that are connected to the end host fabric interconnect switch must be translated toPLOGls
D. All PLOGLS from the nodes that are connected to the end host fabric interconnect switch must be translated to Flogls
Answer: D