1. On January 1 of Year 1, Congo Express Airways issued $3,650,000 of 8% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,350,000 and the market rate of interest for similar bonds is 9%. The bond premium or discount is being amortized at a rate of $10,000 every six months.

The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be:

$292,000.

$328,500.

$312,000.

$272,000.

$156,000.

2. Gross pay is:

Deductions withheld by an employer.

Take-home pay.

Salaries after taxes are deducted.

The amount of the paycheck.

Total compensation earned by an employee before any deductions.

3. The amount of federal income taxes withheld from an employee's paycheck is determined by:

The employer's merit rating.

Tax tables provided by the state in which the employee works.

Current earnings for the pay period and number of withholding allowances the employee claims.

Multiplying the gross pay by 6.2%.

The amount of social security taxes withheld.

4. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned total wages of $9,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages?

$420.00.

$594.00.

$0.00.

$534.60.

$336.00.

5. FICA taxes include:

Employee state income tax.

Social Security and Medicare taxes.

Federal and state unemployment taxes.

Employee federal income tax.

Charitable giving.