Tyrell company issued callable bonds with a par value of $18,000. the call option requires tyrell to pay a call premium of $500 plus par (or a total of $18,500) to bondholders to retire the bonds. on july 1, tyrell exercises the call option. the call option is exercised after the semiannual interest is paid the day before on june 30. record the entry to retire the bonds under each separate situation.

1. the bonds have a carrying value of $37,500.
2. the bonds have a carrying value of $49.000.

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?

2. a computer equipment was acquired at the beginning of the year at a cost of $56,000 with an estimated residual value of $5,000, and an estimated useful life of five years. determine the second year’s depreciation expense using the straight-line method.

What can be concluded from the data about the reliability and validity of the thermometers