Fred Balm has agreed to work for the Cadenford Foundation at a total annual salary of $58,000. He is uncertain whether he should be paid bi-weekly or semi-monthly and has asked for your assistance. Calculate the typical deductions for CPP and El that must from Freds salary under either alternative. Will the choice affect the total El or CPP Fred pays during the year? taken Complete the table below. (Round your answers to the nearest cent.) Bi-weekly CPP = El = Semi-Monthly CPP = El = Will the choice affect the total El or CPP Fred pays during the year? (Select the correct choice and, If necessary. fill in the answer boxes within your choice.) O A. No. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by O pay periods is approximately equal to the total semi-monthly deductions per pay period multiplied by pay periods. O B. Yos. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is greater than the total semi-monthly deductions per pay period multiplied by pay periods. OC. No. The amount Fred pays is not affected because in each case, the amount of each deduction paid will reach the maximum amount for the deduction. OD. Yes. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is less than the total semi-monthly deductions per pay period multiplied by pay periods.
Fred Balm has agreed to work for the Cadenford Foundation at a total annual salary of $58,000. He is uncertain whether he should be paid bi-weekly or semi-monthly and has asked for your assistance. Calculate the typical deductions for CPP and El that must from Freds salary under either alternative. Will the choice affect the total El or CPP Fred pays during the year? taken Complete the table below. (Round your answers to the nearest cent.) Bi-weekly CPP = El = Semi-Monthly CPP = El = Will the choice affect the total El or CPP Fred pays during the year? (Select the correct choice and, If necessary. fill in the answer boxes within your choice.) O A. No. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by O pay periods is approximately equal to the total semi-monthly deductions per pay period multiplied by pay periods. O B. Yos. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is greater than the total semi-monthly deductions per pay period multiplied by pay periods. OC. No. The amount Fred pays is not affected because in each case, the amount of each deduction paid will reach the maximum amount for the deduction. OD. Yes. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is less than the total semi-monthly deductions per pay period multiplied by pay periods.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Fred Balm has agreed to work for the Cadenford Foundation at a total annual salary of $58,000. He is uncertain whether he should be paid bi-weekly or semi-monthly and has asked for your assistance. Calculate the typical deductions for CPP and El that must be taken
from Fred's salary under either alternative. Will the choice affect the total El or CPP Fred pays during the year?
Complete the table below. (Round your answers to the nearest cent.)
Bi-weekly
CPP =
El =
Semi-Monthly.
CPP =
El =
Will the choice affect the total El or CPP Fred pays during the year?
(Select the correct choice and, if necessary, fill in the answer boxes within your choice.)
O A. No. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is approximately equal to the total semi-monthly deductions per pay period multiplied by pay periods.
O B. Yes. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is greater than the total semi-monthly deductions per pay period multiplied by pay periods.
OC. No. The amount Fred pays is not affected because in each case, the amount of each deduction paid will reach the maximum amount for the deduction.
O D. Yes. The amount Fred pays is not affected because the total bi-weekly deductions per pay period multiplied by pay periods is less than the total semi-monthly deductions per pay period multiplied by pay periods.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education