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Nadusha1986 [10]
3 years ago
9

Sally hires a maid to work in her home for $280 per month. The maid is 25 years old and not related to Sally. During 2019, the m

aid worked 9 months for Sally.Do not round immediate computations and round your final answers to two decimal places. a. What is the amount of Social Security tax Sally must pay as the maid's employer? b. What is the amount of Medicare tax Sally must pay as the maid's employer? c. What is the amount of Social Security and Medicare tax which must be withheld from the maid's wages? d. Sally should withhold for Social Security and Medicare tax of ___.
Business
1 answer:
Black_prince [1.1K]3 years ago
3 0

Answer:

Explanation:

Since we know that the current Social Security tax is 12.4% with employees and employers each paying 6.2%; and the Medicare tax rate is 2.9%. Employers and employees split that cost with each paying 1.45%

a. Social Security Tax

Wage per month = 280$

social security tax = ( wage per month x number of months worked) x tax rate

social security tax = ( 280 x 9 ) x 6.20%

social security tax = 156.24 $

b. Medicare Tax

Medicare tax = ( wage per month x number of months worked) x tax rate

Medicare tax = (280 x 9) x 1.45%

Medicare tax = 36.54$

c. Social security and medicare tax withheld

Social Security and Medicare tax = ( wage per month x number of months worked) x tax rate

Social Security and Medicare tax = (280 x 9) x (6.2 + 1.45)

Social Security and Medicare tax = (280 x 9) x 7.65

Social Security and Medicare tax = 192.78$

d. Sally should withhold for social security and medicare tax of 192.78$

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Answer:

B) NDPFC + Indirect Taxes

Explanation:

Net domestic product (NDP) is obtained by subtracting depreciation from gross domestic product (GDP), and it can be calculated at market price (NDPmp) or at factor cost (NDPfc):

  • NDPmp = GDPmp – depreciation
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If we substitute NDPfc into option B, we will get:

NDPmp = NDPfc + indirect taxes

NDPmp = (GDPmp - depreciation - indirect taxes) + indirect taxes

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Ginny, a licensee, uses a preprinted contract in Tim's purchase of a new loft apartment. There is a discrepancy in the contract
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The handwritten clause generally supersedes the preprinted clause.

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What is one drawback of pure competition compared to monopolies?
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Answer:

D. Pure competition spreads resources between many different

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Explanation:

Pure competition is a market structure with many suppliers and many buyers. All the suppliers sell a homogeneous product. There is intense business competition among the suppliers. Other characteristics of pure competition include

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On November 1, Vacation Destinations borrows $1.57 million and issues a six-month, 9% note payable. Interest is payable at matur
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Answer:

(a) To Record the issuance of the note

Debit Cash $1.57 million

Credit Notes payable $1.57 million

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(b) Adjusting entry for interest expense at December 31:

Debit Interest expense $23,550

Credit Interest payable $23,550

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Note payable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

Interest expense on the notes is calculated as: Principal x Interest Rate x Time

In this case, the total interest expense is $1.57 million x 9%/12 x 6 months = $70,650.

Total interest expense to the Company as at December 31 is therefore $70,650 / 6 months x 2 months = $23,550.

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