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1 pes Snickers Company paid $50,000 to renovate its factory floor so that production can be expanded. It also paid $20,000 to inspect and repair all machines on the factory floor to ensure that equipment does not stop working before the end of its useful life. Which of the following statements is TRUE? Both items are expenses. The $50,000 is a capital expenditure and the $20,000 is an expense. Both items are capital expenditures. The $50,000 is an expense and the $20,000 is a capital expenditure. Question 25 On January 1, 2021, Oak Corporation issued $900,000 of 10%, 5-year bonds at 95, with interest paid annually. Using the straight-line amortization method, what is the carrying value of the bonds one year later on January 1, 2022? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.) $855,000 $846,000 $864,000 $891,000 Question 26 1 pts On January 1, 2021, Blue Corporation issues $200,000, 5-year, 8% bonds at 105. Interest is paid semiannually on January 1 and July 1. Orange Corporation uses the straight-line method of amortization. The company's fiscal year ends on December 31. The necessary journal entry on January 1, 2022 includes: a debit to Premium on Bonds Payable of $1,000 a debit to interest Expense of $7,000 a debit to Interest Payable of $8,000 a credit to Interest Payable of $8,000

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