Red Mountain, Inc. has the following information from its payroll records: Salaries and wages earned by employees$180,000 Less: income taxes withheld from employees 27,000 Less: FICA taxes withheld from employees 9,000 Net pay to employees$144,000 The employer amount of FICA taxes that Red Mountain is required to pay is equal to the amount that it withholds from its employees. Assume no other payroll taxes are incurred at this time. What is Red Mountain's total expense with regards to this payroll?

salary and wages =$180000 FICA taxes withheld =$9000

Answered: Red Mountain, Inc. has the following…

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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Red Mountain, Inc. has the following information from its payroll records:

Salaries and wages earned by employees	$	180,000
Less: income taxes withheld from employees		27,000
Less: FICA taxes withheld from employees		9,000
Net pay to employees	$	144,000

The employer amount of FICA taxes that Red Mountain is required to pay is equal to the amount that it withholds from its employees. Assume no other payroll taxes are incurred at this time. What is Red Mountain's total expense with regards to this payroll?

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