The local major league team just signed an undrafted rookie to a new contract in December 2014. The agreement specifies that the player will provide services for the 2015 and 2016 seasons in return for monthly checks of $50,000 in May, June, July, and August each summer (this is when the games are played). The contract does not contain any signing bonus. How much liability should the team record for this contract in its balance sheet dated December 31, 2014?
a. $400,000
b. $200,000
c. The present value of 4 payments in 2015 and 4 payments in 2016
d. Zer0

Martin Co. is a retailer and does not manufacture products. At the beginning of the year, Martin Co. had a balance of $195 in wages payable. During the year, Martin paid employees $3,200 in cash. At the end of the year, wages payable has a balance of $250. What is wage expense this year?
a. $3,145
b. $3,200
c. $3,255
d. $3,450
e. None of the above

The Wynkoop Co. began operations on January 1, 2014. It bought 10 units of merchandise on January 8, 2014 for $14 each. It bought another 30 units on March 15 for $16 each. It bought another 15 units on September 15 for $18 each. Wynkoop sold 43 units of merchandise in 2014. Wynkoop uses the LIFO cost flow assumption. What is cost of goods sold for the year ended December 31, 2014?
a. $718
b. $890
c. $216
d. $172
e. None of the above

A company began operations in 2009 and has been using the FIFO cost flow assumption ever since. The cost per unit of inventory has declined over time, but the number of units in inventory has continued to grow. Which of the following statements is most accurate?
a. The company's income this period would have been lower if it had always used LIFO.
b. The company's income this period would have been higher if it had always used LIFO.
c. We have insufficient information to make any statement about LIFO income.

The December 31, 2014 balance sheet of the Welch Co. shows a bond payable with a net book value of $46,768. The notes reveal the bond has a face amount of $50,000, a stated annual interest rate of 8%, and was issued when the market rate was 10%. The bond pays interest on June 30 and December 31 each period. For the interest payment period ending June 30, 2015, what is the amount of interest expense? ("ish" means within a dollar or two)
a. $4,677 ish
b. $2,500
c. $2,338 ish
d. $1,871 ish
e. None of the above