33) Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January? A) $612. B) $1,224. C) $916. D) $304. 34) Amplify, Inc. was sued by Sound City for $50,000. Sound City feels very confident that it will win the case and will be awarded the full amount. Amplify, Inc. feels it is probable that it will lose the case and pay Sound City the full amount. Which of the following is correct? A) Amplify, Inc. would record a loss and contingent liability for $50,000, Sound City would record a gain and lawsuit receivable for $50,000. B) Sound City would record a gain and lawsuit receivable for $50,000, Amplify would record nothing. C) Sound City would record nothing, Amplify would record nothing. D) Amplify, Inc. would record a loss and contingent liability for $50,000; Sound City would record nothing.
33) Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and
A) $612.
B) $1,224.
C) $916.
D) $304.
34) Amplify, Inc. was sued by Sound City for $50,000. Sound City feels very confident that it will win the case and will be awarded the full amount. Amplify, Inc. feels it is probable that it will lose the case and pay Sound City the full amount. Which of the following is correct?
A) Amplify, Inc. would record a loss and
B) Sound City would record a gain and lawsuit receivable for $50,000, Amplify would record nothing.
C) Sound City would record nothing, Amplify would record nothing.
D) Amplify, Inc. would record a loss and contingent liability for $50,000; Sound City would record nothing.
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