1.A company issued 10-year, 8% bonds with a par value of $200,000. The company received $190,000 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:
A $7,500.00
B $8,500.00
C $8,000.00
D $16,000.00
E $18,000.00
2.The FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%. An employee's share of both FICA taxes was $3,901.50. Given that this employee did not exceed the FICA earnings limitation, compute gross pay.
A Zero, since the employee's pay did not exceed the FICA limit.
B $62,927.42.
C $269,068.96.
D $51,000.
E $29,846.48.
3.The amount of federal income taxes withheld from an employee's paycheck is determined by:
A The employee's credit rating.
B Multiplying gross pay by 6.2%.
C The employer's merit rating.
D The employee's annual earnings rate and merit rating.
E The employee's annual earnings rate and number of withholding allowance