In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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5-7A • LO 3, 4
In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant
in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in
Michigan. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company
paid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Michigan. Compute:
See Example 5-1 on page 5-7
a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages.
b. Amount of SUTA tax the company must pay to Michigan on Porter's wages.
c. Amount of the net FUTA tax on Porter's wages....
2$
2$
Transcribed Image Text:5-7A • LO 3, 4 In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plant in Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% in Michigan. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Company paid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Michigan. Compute: See Example 5-1 on page 5-7 a. Amount of SUTA tax the company must pay to Nebraska on Porter's wages. b. Amount of SUTA tax the company must pay to Michigan on Porter's wages. c. Amount of the net FUTA tax on Porter's wages.... 2$ 2$
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