Adidas issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adidas received $206,948 in cash proceeds. Which of the following statements is true?

a. Adidas must pay $200,000 at maturity plus 20 interest payments of $8,000 each.
b. Adidas must pay $206,948 at maturity plus 20 interest payments of $8,000 each.
c. Adidas must pay $200,000 at maturity plus 20 interest payments of $7,500 each.
d. Adidas must pay $200,000 at maturity and no interest payments.
e. Adidas must pay $206,948 at maturity and no interest payments.

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by bridgeport corporation. 1. bridgeport developed a new manufacturing process, incurring research and development costs of $195,600. the company also purchased a patent for $45,200. in early january, bridgeport capitalized $240,800 as the cost of the patents. patent amortization expense of $12,040 was recorded based on a 20-year useful life. 2. on july 1, 2017, bridgeport purchased a small company and as a result recorded goodwill of $52,000. bridgeport recorded a half-year’s amortization in 2017, based on a 20-year life ($1,300 amortization). the goodwill has an indefinite life. prepare all journal entries necessary to correct any errors made during 2017. assume the books have not yet been closed for 2017.