On december 31, 2018, spearmint, inc., issued $450,000 of 9 percent, 3-year bonds at a premium of $11,795. the bonds pay interest semiannually. spearmint uses the straight-line bond amortization method. the entry to record each interest payment includes a debit to bond interest expense for $18,284, a debit to premium on bonds payable for $1,966, and a credit to cash for $20,250. at june 30, 2019, the carrying value of the bonds will equal

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.