Intermediate II Test 1 Version 1 Name Multiple choice 4 pints each, problems 20 points each, total 100 points Q1 Off-balance-sheet financing has many forms except: A. Non-Consolidated Subsidiary B. Special Purpose Entity C. Operating lease D. Leases other than operating lease (eg.capital lease Section Q2 Among the following payroll deductions, which withholding taxes are only paid by employees? Income tax withholding FICA tax Union dues Federal unemployment tax State Unemployment tax A. FICA tax B. Income tax withholding and Union dues C. Income tax withholding, FICA tax, Union dues and Federal unemployment tax D. Income tax withholding, FICA tax, Union dues, Federal unemployment tax and State Unemployment tax Q3 On January 1, 2007, Fedex Corp. issued at 97 bonds with a par value of $900,000, due in 20 years. It incurred bond issue costs totaling $16,000. Eight years after the issue date, Fedex calls the entire issue at 105 and cancels it. (Assume the amortized method uses straight-line method.) Which of the following statement is correct? A. The loss on redemption of fedex is 874,200. B. The loss on redemption of fedex is 270,000. C. The unamortized discount for the remaining 12 years is 9600. D. The journal entry to record requisition of the bond for Fedex is: Bonds Payable Loss on Redemption of Bonds 900,000 70,800 Discount on Bonds Payable Unamortized Bond Issue Costs Cash 9,600 945,000