Fica tax withheld from employees contribute to two federal programs social security and Medicare A corporation is not an entity which is separate and distinct from its owners Retained earnings are a part of stockholders' equity The purchase of treasury stock by a corporation increases total assets and stockholders' equity A 10 stock dividend will increase the number of shares outstanding and the book value per share will decrease Capital stock that has contractual preferences over common stock in certain areas is called preferred stock If the market interest rate is greater than the contractual interest rate bonds will sell If $800000,8% bonds are issued on January 1, and pay interest semiannually the amount of interest paid on July 1 will be 32000 A stock split results in an in the stated value per share of stock Discount on bonds is an additional cost of borrowing and should be recorded as interest expense over the life of the bonds answer true or false