Chapter 9, Problem 3E

1.

To determine

The identify the amount of additional labour expense to the company was due to tax laws and also to identify the amount of the employee’s take-home pay.

2.

To determine

List the liabilities and their amount that to be reported on the company’s January 31, 2015 balance sheet.

3.

To determine

Comment whether the employees would react differently to a 10% percent increase in the employer’s share of FICA than to 10% increase in the basic level of salaries and also explain whether financial analyst will react differently.