Question 1: Thomas Longbow is the only employee of Presido, Inc. During the first week of January, Longbow earned $4,200.00 and had federal and state income tax withholdings of $210.00 and $78.75, respectively. FICA taxes are 7.65% on earnings up to $117,000. State and federal unemployment taxes for the period are $262.50 and $42.00, respectively.

What would be the amount of Longbows payroll check for the first week of January?

a. $3,878.70

b. $3,589.95

c. $3,285.45

d. $4,200.00

Question 2: Maxwell Manufacturing issued $750,000, 10-year, 10% bonds at 105.

What is the issue price of these bonds?

Multiple Choice

a. $787,500

b. $750,000

c.$825,000

d. $712,500