Patton Company purchased $600,000 of 10% bonds of Scott Co. on January 1, 2013, paying $564,150. The bonds mature January 1, 2023; interest is payable each July 1 and January 1. THe discount of $35,850 provides an effective yield of 11%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity. On July 1, 2013, Patton Company should increase its Debt Investments account for the Scott Co. bonds by

There is a spectacular house that salesperson Rameses from Aida Realty has been trying for several weeks to list for sale. The owners have been interviewing salespeople from different firms. They tell Aida's Ramses that Botchko Properties will charge a 2 percent lower commission for selling the house. What should Aida's salesperson say to the owner in order to get the listing?

A) Salespeople will not show Botchko's listings because of their low commission fees. B) Most brokers in the area charge a standard rate of commission, including Aida. C) The Botchko firm cannot provide good services because they charge less. D) Aida Realty provides excellent services to market their sellers' properties.

Initech Incorporated, a multinational giant, runs a number of diversified businesses. Which of the following can be considered as an intellectual property of the firm?

A. Income arising from renting land and buildings B. Profits arising from the sale of agricultural crops C. Interest earned by lending capital to other firms D. Innovations and capabilities, and skills of the employees E. Investments made in raw materials and machinery