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andre [41]
3 years ago
14

The total wage expense for Grande Co. was $ 156 comma 000. Of this​ total, $ 32 comma 000 was above the OASDI wage base limit an

d not subject to this tax. All earnings are subject to Medicare​ taxes, and $ 58 comma 000 was above the federal and state unemployment wage base limits and not subject to unemployment taxes. Please calculate and journalize the total payroll tax expense for Grande Co. given the following rates and wage base​ limits:
Business
1 answer:
alexgriva [62]3 years ago
6 0

Answer:

Dr FICA OASDI (Social Security) tax expense $7,688

Dr FICA Medicare tax expense $2,262

Dr FUTA tax expense $588

Dr SUTA tax expense $5,586

    Cr FICA OASDI (Social Security) tax payable $7,688

    Cr FICA Medicare tax payable $2,262

    Cr FUTA tax payable $588

    Cr SUTA tax payable $5,586

Explanation:

Federal unemployment tax 0.6% = ($156,000 - $58,000) x 0.6% = $588

State unemployment tax 5.7% = ($156,000 - $58,000) x 5.7% = $5,586

OASDI 6.2% = ($156,000 - $32,000) x 6.2% = $7,688

Medicare 1.45% = $156,000 x 1.45% = $2,262

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Answer:

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Explanation:

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Amortization of discount from july 1 to dec 31 (6 months):

Interest Revenue = $4,530,000* 10% * 6/12

Interest Revenue= $226500

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Interest Receivable = $200000

Discount amortized =Interest Revenue - Interest Receivable

Discount amortized = $226500 - $200000

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The amount fox should report on Dec 31,20x1 = $4,556,500

4 0
3 years ago
The issuance of notes payable for borrowing is classified in the statement of cash flows as a(n): Multiple Choice Operating acti
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  • Hence, the transaction of the issuance of notes payable for borrowing will be classified in cash flows statement as a Financing activities.

Therefore, the Option C is correct.

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2 years ago
A government's comprehensive annual financial report (CAFR) is divided into three main sections. The statements, schedules, tabl
Savatey [412]

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Step wise detailed solution is given in the attached diagram

3 0
3 years ago
A policy maker argues that congestion on the roads can be solved by private ownership of the roads. He argues that if the roads
Roman55 [17]

Answer:

Externalities can be defined as those activities that incurs cost on another party.

Road congestion creates externalities such as increased time for travel, more pollution in a city, more likelihood of accidents, more stress for road users.

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If road are private, congestion is going to fall and there would be excludability. But this is a public good, turning it to a private good would cause issues. Private markets benefits out is positive externalities.

4 0
2 years ago
Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company’s income statement s
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Answer:

BEP 2016: $ 1,700,000

BEP 2017:

under proposition a)

contribution margin:

(2,310,000 * 1.25 - 924,000) / 2,310,000 * 1.25 = 1,500,000

under porposition b)

fixed cost decrease by: 197,000 - 40,000 = 157,000

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(1,020,000 - 157,000) / (0.6 - 0.05) = 1,569,090.90

under proposition c)

We distrubute the same cost but now 50% is fixed and 50% variable:

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Explanation:

Break even point formula:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

Where:

\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio

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Contribution ratio: 1,386,000 / 2,310,000 = 0.6

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6 0
3 years ago
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