Answer:
A. SUTA = $929.07
FUTA = $103.23
B. SUTA = $204.93
FUTA = $22.77
Explanation:
A. First Quarter
52 weeks in a year.
Quarterly therefore there are,
= 52/4
= 13 weeks in a quarter.
In a quarter the employees makes the following,
Larry
= 355 * 13
= $4,615
Curly
= 430 * 13
= $5,590
Moe
= 560 * 13
= $7,280
SUTA Taxes are on first $7,000 so Moe will not pay full 5.4%.
SUTA Taxes
Larry
= 4,615 * 5.4%
= $249.21
Curly
= 5,590 * 5.4%
= $301.86
Moe
= 7,000 * 5.4%
= $378
In total for SUTA,
= 249.21 + 301.86 + 378
= $929.07
For FUTA
Tax is 6% - SUTA so,
= 6% - 5.4%
= 0.6%
Larry
= 4,615 * 0.6%
= $27.69
Curly
= 5,590 * 0.6%
= $33.54
Moe
= 7,000 * 0.6%
= $42
In total for FUTA,
= 27.69 + 33.54 + 42
= $103.23
B. Second Quarter.
Here bear in mind that Moe no longer has to be paid for as he has earned $7,000 in the first quarter.
This leaves just Larry and Curly who have already earned something in the first quarter which should be removed from $7,000 to find out how much they are to pay taxes on.
SUTA Taxes
First $7,000.
Larry has already been paid 4,615 leaving,
= 7,000 - 4,615
= $2,385 is the figure that SUTA and FUTA should be based on.
For Curly
= 7,000 - 5,590
= $1,410 is the figure that SUTA and FUTA should be based on.
Larry SUTA
= 2,385 * 5.4%
= $128.79
Curly SUTA
= 1,410 * 5.4%
= 76.14
Total for SUTA is,
= 128.79 + 76.14
= $204.93
Then FUTA using the same figures.
Larry FUTA
= 2,385 * 0.6%
= $14.31
Curly SUTA
= 1,410 * 0.6%
= $8.46
Total for FUTA is,
= 14.31 + 8.46
= $22.77
The fact that the manufacturing plant dumps chemical waste into a nearby river and poisons the water supply is an Externality.
<h3>What is an externality?</h3>
An externality is an effect that a third party feels as a result of a transaction or event that has little to nothing to do with them.
The manufacturing plant is dumping its chemical waste in the river and polluting the water supply for the environment. This is a negative externality that the town had nothing to do with.
Find out more on negative externalities at brainly.com/question/24057026
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Answer:
$29,750
Explanation:
Given that
Borrowed amount = $350,000
Interest rate = 8.5%
The computation of interest expense is shown below:-
Interest expense in the first annual payment = Borrowed amount × Interest rate
= $350,000 × 8.5%
= $29,750
Therefore, for computing the interest expense in the first annual payment we simply multiply borrowed amount with interest rate.