5-7A • LO 3, 4In April of the current year, Freeman Steel Company transferred Herb Porter from its factory in Nebraska to its plantin Michigan. The company's SUTA tax rates based on its experience ratings are 3.2% in Nebraska and 3.8% inMichigan. Both states base the tax on the first $9,000 of each employee's earnings. This year, Freeman Steel Companypaid Herb Porter wages of $20,900; $2,800 were paid in Nebraska and the remainder in Michigan. Compute:See Example 5-1 on page 5-7a. 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$2$

Solution: (a). Amount of SUTA tax to be paid to Nebraska = $2,800 x 3.2%…

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

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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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