Chapter 4, Problem 16Q

1: An employer in Delaware City, DE, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $6,100 and $8,800. During the current pay period, these employees earn $1,450 and $2,000, respectively. The applicable SUTA tax rate is 2.1%, and the Delaware SUTA threshold is $14,500. FUTA tax = $ SUTA tax = $ 1,101.00 385.35 × × 2: An employer in Bridgeport, CT, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,500, $12,900, and $14,200. During the current pay period, these employees earn $2,200, $1,950, and $2,400, respectively. The applicable SUTA tax rate is 4.9%, and the Connecticut SUTA threshold is $15,000. FUTA tax = $ SUTA tax = $ 2,349.00 1,915.35 3: An employer in Wheaton, IL, employs two individuals whose taxable earnings to date (prior to the current pay period) are $1,420 and $12,871. During the current pay period, these employees earn $3,350 and $1,700, respectively. The SUTA tax rate is 4%,…

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What is the amount of straight-line depreciation for year 2 if the useful life of an asset is 6 years, the purchase price is $50,000, and the salvage value is $3,000?