1. A secured bond would require:
a. a plan for paying off the bond at maturity
b. no restrictive covenants
c. an independent trustee
d. a claim on specific assets in the event of default
2. Equipment is purchased for $1,000,000 (no salvage value) in cash. The company uses straight line depreciation for 7 years. Assume no other fixed assets. What is the Accumulated Depreciation balance at the end of year 3?
a. $571,429
b. $142,857
c. $428,571
d. $0