Buford is a manager with the Beauty Supply Company. His fringe benefits for the current year include the following:20% discount on store items available to all employees(gross profit percentage is 20%)Free parking provided only to management employeesPersonal letters occasionally typed by secretaryPersonal use of company condominium for 1 weekendMembership in a local health clubEmployer-provided van pool for commuting$46523550200370100The above amounts represent the fair market values of the fringe benefits for 1 year. How much is included in Buford's grossincome in the current year?А.$670В.$570$620D. $855Group life insurance premiums paid by the employer covering the lives of employees who designate their own beneficiariesare not deductible.O A.True.В.False.

Free parking provided - 235 Personal letters occasionally - 50 personal use of company's…

The above amounts represent the fair market values of the fringe benefits for 1 year. How much is included in Buford's gross income in the current year? O A. $670 В. $570 ОС. $620 D. $855 Group life insurance premiums paid by the employer covering the lives of employees who designate their own beneficiaries are not deductible. O A. True. В. False.

The above amounts represent the fair market values of the fringe benefits for 1 year. How much is included in Buford's gross income in the current year? O A. $670 В. $570 ОС. $620 D. $855 Group life insurance premiums paid by the employer covering the lives of employees who designate their own beneficiaries are not deductible. O A. True. В. False.

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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A7
1. Of the cafeteria plans listed, which is NOT a voluntary nontaxable deduction? Answer: A. Medicare B. Group-term life insurance C. Medical care reimbursements D. Adoption assistance 2. Prior to the current period, Sol Berenson had earnings subject to FICA tax of $138,600. This week, Sol has gross earnings of $4,900, so he will have $_____ withheld in FICA tax for this period. 3. Barring any special circumstances, over what age is an individual eligible to receive Medicare benefits? Answer: A. 55 B. 62 C. 65 D. 70
M104.
which of the following is not an example of a nontaxable fringe benefit? Emploven provided parkins of $120 per month. Dualica emploree discounts Group-term life insurance policy providing $100,000 of coverage Monthly employer provided transit benefit of $100.
SINGLE Persons If the Adjusted Wage Amount (line 1d) is The tentative amount to withhold is… Plus this percentage… of the amount that the wage exceeds… at least… But less than… A B C D E $0 $4,350 $0.00 0% $0 $4,350 $14,625 $0.00 10% $4,350 $14,625 $46,125 $1,027.50 12% $14,625 $46,125 $93,425 $4,807.50 22% $46,125 $93,425 $174,400 $15,213.50 24% $93,425 $174,400 $220,300 $34,647.50 32% $174,400 $220,300 $544,250 $49,335.50 35% $220,300 $544,250 $162,718.00 $162,718.00 37% $544,250 Assume you are offered a job with a salary of $42,000 and a bonus of 7.5% based on your performance during the year. If you receive your full bonus at the end of the year, what is your total (gross or before tax) pay for the year? Assume you are filing under single status. Using the income tax table provided below, answer…
kk.18.
Question 6: What is the earnings threshold over which an employee whose filing status is Married Filing Separately will be subject to the additional Medicare tax? Answer: А. O $117,000 В. O $125,000 С. O S200,000 D. O $250,000
SINGLE Persons If the Adjusted Wage Amount (line 1d) is The tentative amount to withhold is… Plus this percentage… of the amount that the wage exceeds… at least… But less than… A B C D E $0 $4,350 $0.00 0% $0 $4,350 $14,625 $0.00 10% $4,350 $14,625 $46,125 $1,027.50 12% $14,625 $46,125 $93,425 $4,807.50 22% $46,125 $93,425 $174,400 $15,213.50 24% $93,425 $174,400 $220,300 $34,647.50 32% $174,400 $220,300 $544,250 $49,335.50 35% $220,300 $544,250 $162,718.00 37% $544,250 Assume you are offered a job with a salary of $42,000 and a bonus of 7.5% based on your performance during the year. If you receive your full bonus at the end of the year, what is your total (gross or before tax) pay for the year? Assume you are filing under single status. Using the income tax table provided below, answer the following…
1. What is the total Medicare tax rate for an employee who is subject to both standard Medicare tax and Additional Medicare tax? Answer: A. 2.35% B. 2.45% C. 6.2% D. 7.65% 2. Prior to the current period, Jamie Pratt, whose tax return filing status is single, had earnings subject to Medicare tax of $248,000. This week, Jamie has gross earnings of $3,700. His employer will withhold $_______ in total Medicare tax. 3. What type of institution might offer a 403(b) plan to its employees? Answer: A. A small business B. Private colleges C. Fortune 500 companies D. Public education institutions and certain tax-exempt organizations E. All of these options
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03:59:11 At the end of the first pay period of the year, Sofia earned $4,600 of salary. Withholdings from Sofia's salary include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $512 of federal income taxes, $172 of medical insurance deductions, and $22 of life insurance deductions. Compute Sofia's net pay for this first pay period. Note: Round your intermediate and final answers to 2 decimal places. Gross pay FICA Social Security FICA Medicare Federal income taxes Medical insurance deduction Life insurance deduction. Total deductions Net pay 0.00