The following data, presented in alphabetical order, are taken from the records of Nieto Corporation.

Accounts payable $ 250,000

Accounts receivable 90,000

Accumulated depreciationbuildings 180,000

Accumulated depreciationequipment 52,000

Allowance for doubtful accounts 6,000

Bonds payable (10%, due 2025) 400,000

Buildings 900,000

Cash 142,000

Discount on bonds payable 20,000

Equipment 275,000

Goodwill 150,000

Inventory 170,000

Investment in Tabares, Inc. stock (22% ownership) 600,000

Land 520,000

Notes payable (due 2018) 70,000

Patents 50,000

Prepaid insurance 16,000

Salaries payable 23,000

Questions:

1-If Bonds Payable were issued at a premium of $20,000, what should Total Liabilities show as a total? USE THE DATA TAKEN FROM THE RECORDS OF NIETO CORP AND SHOW CALCULATION

2- If Bonds Payable were issued at face value, what should Total Liabilities show as a total? USE THE DATA TAKEN FROM THE RECORDS OF NIETO CORP AND SHOW CALCULATION (5pts)

I don't know how i am expected to use the discount on bonds payable. Please help. Thank you