e. Cray’s long-term debt consists of 10-year, 10% bonds issued at face value on March 31, 2011. Interest is payable semiannually on March 31 and September 30. Book purchases Cray’s bonds at the face...

e. Cray’s long-term debt consists of 10-year, 10% bonds issued at face value on March 31, 2011. Interest is payable semiannually on March 31 and September 30. Book purchases Cray’s bonds at the face value of $320,000 in 2011, and there is no change in ownership.

f. During October 2014, Book sells merchandise to Cray at a total invoice price of $720,000, which includes a profit of $180,000. At December 31, 2014, one-half of the merchandise remains in Cray’s inventory, and Cray has not paid Book for the merchandise purchased.