answer all questions please.

Liabilities

12. An advantage of financing with debt is: a. Stock never has to be repaid. b. Dividends paid do not reduce income taxes. c. Interest is an expense and reduces income taxes. d. Interest doesn't legally have to be paid. e. None of the above, the correct answer is: 13. A bond will sell at a discount when: a. The market rate of interest is less than the bond rate of interest. b. The market rate of interest is equal to the bond rate of interest. C. The market rate of interest is greater than the bond rate of interest. d. The bond is a bad investment. e. None of the above, the correct answer is: 14. XYZ Corporation issued $2,000,000 in 5-year, 8% bonds at 102. The company's journal entry to record the sale will include a: a. debit to Cash of $2,000,000 b. debit to Bond Premium of $40,000 C. credit to Bonds Payable for $2,000,000 d. credit to Cash for $2,040,000 e. None of the above, the correct answer is