Ask question

Ask question

All categories

3 years ago

9

Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax

is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 19% of federal tax, determine if Juanita's net pay is correct.Choose the true statement below. a. The net pay is correct. b. The Social Security tax is not correct. c. The Medicare tax is not correct. d. The state tax is not correct.

1 answer:

tensa zangetsu [6.8K]3 years ago

3 0

Answer:

a. The net pay is correct.

Explanation:

Suppose the missing part of the question which is the gross pay and the federal tax is 1020.00 and 107.00 respectively.

Then, Social Security tax 6.2% of the gross pay = $\dfrac{6.2}{100}\times 1020$

Social Security tax 6.2% of the gross pay = 0.062 × 1020

Social Security tax 6.2% of the gross pay = $63.24

the Medicare tax is 1.45% of gross pay = $\dfrac{1.45}{100} \times 1020$

the Medicare tax is 1.45% of gross pay = 0.0145 × 1020

the Medicare tax is 1.45% of gross pay = $14.79

the state tax is 19% of federal tax = $\dfrac{19}{100} \times 107$

the state tax is 19% of federal tax = 0.19 × 107

the state tax is 19% of federal tax = $20.33

Hence, to determine if Juanita's net pay is correct, we have the summation of all our estimated figures minus the gross pay.

i.e

Juanita's net pay = $1020 - $(107 + 63.24 + 14.79 + 20.33)

Juanita's net pay = $1020 - 205.36

Juanita's net pay = $814.64

You might be interested in

When a project has a positive total slack, some activities can be ________ without jeopardizing completion of the project by its

Art [367]

Answer:

Delayed, accelerated

Explanation:

Total or aggregate slack, is the term which is defined for the activity, is the time that this activity could delayed without impacting on the final date of the project.

It can be computed as the:

Smaller value of Late finish - Early finish field

and

Late start - Early start field

So, when project has positive total slack, few activities delayed the completion of project and when the project has negative total slack, then few activities accelerated to finish the project.

4 0

3 years ago

App Holdings is expected to pay dividends of $1.50 every six months for the next three years. If the current price of App Holdin

Y_Kistochka [10]

Answer:

The answer is $34.36

Explanation:

FV = PV x (1 + R x ((1 + r))^T = $22.6 x (1 + {($1.5 / $22.60) x [1 + (18% / 2)]}^6 = $34.36

8 0

3 years ago

If real GDP increased from $10 billion to $11 billion from the first quarter of 2016 to the first quarter of 2017, but had incre

Sphinxa [80]

Answer:

10%; 16%

Explanation:

Given that,

Real GDP in the first quarter of 2016 = $10 billion

Real GDP in the first quarter of 2017 = $11 billion

Increased from the fourth quarter of 2016 to the first quarter of 2017 = 4%

Growth rate from the first quarter of 2016 to first quarter of 2017:

= $\frac{GDP_{2017}-GDP_{2016} }{GDP_{2016}}\times 100$

= $\frac{11-10 }{10}}\times 100$

= 10%

Real GDP growth rate is as follows:

= 4% × 4

= 16%

3 0

3 years ago

Given the following data on bond yields:

Alexandra [31]

Answer:

Explanation:

a) Confidence index=Yield on top-rated corporate bonds/ Yield on intermediate-grade corporate bonds

This year=9.3%/11.8%=0.788

Last Year=9.8%/11.3%=0.8673

b) From the calculations we can see that confidence index is decreasing from 0.8673 to 0.788.

4 0

3 years ago

Exercise 5-12 Presented below is the trial balance of Larkspur Corporation at December 31, 2017. Debit Credit Cash $ 200,490 Sal

shutvik [7]

Answer:

2017 Balance Sheet

$1,368,060 TOTAL CURRENT ASSETS

$2,637,630 TOTAL NONCURRENT ASSETS

$4,005,690 TOTAL ASSETS

$792,730 TOTAL CURRENT LIABILITIES

$1,906,980 TOTAL NONCURRENT LIABILITIES

$2,699,710 TOTAL LIABILITIES

$1,305,980 TOTAL EQUITY

$4,005,690 TOTAL EQUITY + LIABILITIES

Explanation:

Liquidity it's define as the speed of an assets to be converted to cash,

the assets that take less days to buy or to sold are more liquid than others.

Cash it's the assets most liquid then are the Accounts Receivables and Inventories for last, in the middle exist different assets as Equity investments.

Prepaid expenses are not liquid because these accounts doesn't means the company could get cash if not that the company have rights over something.

2017 Balance Sheet

$200,490 Cash

$157,080 Debt Investments

$410,000 Accounts Receivable

$600,490 Inventory

$1,368,060 TOTAL CURRENT ASSETS

$264,080 Land

$604,080 Equipment

-$60,000 Accum Depreciation

$1,043,490 Buildings

-$152,000 Accum Depreciation

$195,000 Patents

$280,490 Equity Investments

$160,000 Other Assets Intangibles

$302,490 Debt Investments

$2,637,630 TOTAL NONCURRENT ASSETS

$4,005,690 TOTAL ASSETS

$459,080 Accounts Payable

$94,080 Notes Payable

$100,080 Accrued Liabilities

$139,490 Dividends Payable

$792,730 TOTAL CURRENT LIABILITIES

$903,490 Notes Payable

$1,003,490 Bond Payable

$1,906,980 TOTAL NONCURRENT LIABILITIES

$2,699,710 TOTAL LIABILITIES

$1,004,080 Common Stock

-$195,080 Treasury Stocks

$83,490 Paid in Capital

$413,490 Retained Earnings

$1,305,980 TOTAL EQUITY

$4,005,690 TOTAL EQUITY + LIABILITIES

Income Statement

Sales $8,104,080

Depreciation -$4,800,000

MARGEN BRUTO $3,304,080

Selling Expenses -$2,004,080

Adm Expenses -$901,820

Interest Expenses -$212,820

Income Statement $185,360

Investment Revenue $64,820

Gain $81,820

3 0

3 years ago