American Co. sold $100,000 of bonds for an issue price of 98. As a result of selling these bonds, its total assets increase by:

$98,000 and its total liabilities increase by $100,000.

$100,000 and its total liabilities increase by $98,000.

$100,000 and its total liabilities increase by $100,000.

$98,000 and its total liabilities increase by $98,000.

Payroll taxes paid by employees include which of the following?

Federal income tax, federal unemployment tax, and Medicare

Federal income tax withheld, state income tax withheld, and Medicare

Social security, federal income tax, and federal unemployment tax

Social security, federal unemployment tax, and state unemployment tax

Your company sells $50,000 of bonds for an issue price of $52,000. Which of the following statements is correct?

The bond sold at a price of 104, implying a discount of $2,000.

The bond sold at a price of 52, implying a discount of $2,000.

The bond sold at a price of 52, implying a premium of $2,000.

The bond sold at a price of 104, implying a premium of $2,000.