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

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.

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 allowances.