cost accounting An electronics store sold a home theater system to an employee for$300, even though the retail price was $500. The gross profitpercentage is 40%. Such discounts are available to all employees. Howmuch income should be recognized by the employee from thesetransactions?A) $0B) $100C) $120D) $200

Step 1: Definition of Employee Income Recognition in DiscountsWhen an employee purchases a product…

Answered: An electronics store sold a home…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16MC: An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the...

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20. Which of the following would be a non-taxable benefit to an employee? a. A discount on a product that brings the selling price below the cost of goods sold. b. A $100 gift card received for being employee of the month. c. A free membership to the gym on the employer's site. d. A cash allowance for lunches at local restaurants.
If an employee takes a customer to lunch and discusses business, can the employee deduct the cost of a meal? Explain. C O A. Employees can no longer deduct any portion of the cost of meals and entertainment. O B. Employees can deduct 50% of the entire cost. O C. Employees can deduct 50% of their own meals and entertainment that are business related but none of the cost of the customer's meal. O D. Employees can deduct 50% of their own meals and entertainment that are business related as well as 100% of the cost of the customer's meal.
Answer the question on the photo.
1
An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the FICA Medicare tax rate is 1.45%. What is the employees FICA taxes responsibility? A. $535.50 B. $612 C. None, only the employer pays FICA taxes D. $597.50 E. $550
Francis works for a local fly fishing shop. The shop allows employees to purchase two fly rods per year at a discount. This year, Francis purchased one rod. The rod normally retails for $300, the shop's cost was $225, it was sold to Francis for $250, and the employer's average gross profit percentage is 30 percent. What amount of the discount must be included in Francis' income? $25 $40 $50 0-
Subject - account Please help me. Thankyou.
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. نفة C. Gross Pay through Gross Pay for August 31 $ 5,200 2,700 132,100 September $ 2,400 2,800 8,700 Exercise 9-7 (Algo) Computing payroll taxes LO P2, P3 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. a) ✓ Answer is complete but not entirely correct. September Tax Earnings Subject Tax Rate Tax Amount to Tax FICA-Social $ 2,400.00 6.20% $ 148.80 Security FICA-Medicare 2,400.00✓ 1.45% 34.80 FUTA 1,800.00 0.60% 10.80 SUTA 1,800.00 5.40% 97.20 b) September Tax Earnings Subject Tax Rate Tax Amount to Tax FICA-Social $ 2,800.00 6.20% $ 173.60 Security FICA-Medicare 2,800.00…
A salesperson is paid $385 per week plus a commission of 5.5% on all sales. The salesperson sold $448 worth of goods on Monday, $495 on Tuesday, $742 on Wednesday, $907 on Thursday, and $502 on Friday. Returns and allowances for the week were $207. Find this employee's Medicare tax (1.45%). $7.88 $5.05 $2.94 $8.21
Hobby Hut has three employees. Find the amount subject FUTA and the amount of the FUTA for this pay period for each employee. If the YTD is already more than $7000, then $0 is subject to FUTA and the FUTA TAX is $0. And the FUTA rate is at 6.0% or 0.006. Do not put dollars signs in your answers. Employee Year to Date Gross this Pay period Suject to FUTA FUTA Paul Braun 5999 1234 Jackie Prince 9856 2543 Flora Jones 3456 1009
Vishnu
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