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Rudiy27
2 years ago
9

Merger Co. has 10 employees, each of whom earns $1,700 per month and has been employed since January 1. FICA Social Security tax

es are 6.2% of the first $132,900 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee.
Prepare the March 31 journal entry to record the March payroll taxes expenses. (Round your answers to 2 decimal places.)
Business
1 answer:
andriy [413]2 years ago
7 0

Answer:

Date            Description                                         Debit                    Credit

March, 31     Payroll Tax expense                       $‭2,320.5‬0

                    FICA Social Security taxes                                             $1,054

                    FICA Medicare taxes                                                      $ 246.50

                    FUTA taxes                                                                      $ 102

                    SUTA taxes                                                                      $ 918

<u>Working </u>

FICA Social Security taxes = 1,700 * 10 * 6.2% = $‭1,054‬

FICA Medicare taxes = 1,700 * 10 * 1.45% = $‭246.5‬0

FUTA Taxes = 1,700 * 10 * 0.6% = $‭102‬

SUTA Taxes = 1,700 * 10 * 5.4% = $‭918‬

Payroll Tax expense = 1,054 + 246.50 + 102 + 918 = $‭2,320.5‬0

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Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent case
SVEN [57.7K]

Answer:

  • Tax liability = $24,222.50
  • Marginal rate = 24%
  • Average rate = 19.35%

Explanation:

Question requires that we find the Tax liability, Marginal rate and Average rate.

Tax liability:

Chandler is in the $84,200 to $160,725 bracket.

= 14,382.50 + 24% * (125,200 - 84,200)

= 14,382.50 + 9,840

= $‭24,222.5‬0

Marginal rate = 24%

Chandler's bracket is the 24% bracket.

Average rate:

= Tax/ Taxable income

= 24,222.50 / 125,200

= 19.35%

5 0
2 years ago
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A person who pays bills on time has demonstrated that she takes her financial obligations seriously, and this trait positively affects her credit score. The answer is A. 

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5 0
3 years ago
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How can you avoid saying "This year I'm going to start my business" for years?
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At an output level of 84,000 units, you calculate that the degree of operating leverage is 1.80. Suppose fixed costs are $180,00
Irina-Kira [14]

Answer:

The operating cash flow is $196,071 and the new degree of operating leverage is 1.918

Explanation:

a. The computation of operating cash flow is shown below:

By using the information, first we have to calculate the contribution amount.

We know that the operating leverage equals to

Operating leverage = Contribution ÷ EBIT

And, Contribution  = Fixed cost + EBIT

So,

1.80 =  Fixed cost + EBIT ÷ EBIT

1.80 EBIT - EBIT = Fixed cost

0.80 EBIT = $180,000

So, EBIT = $180,000 ÷ 0.80 = $225,000

And, the contribution = $180,000 + $225,000 = $405,000

Contribution is calculated for 84,000 units but we have to compute for 78,000 units

So, contribution for 78,000 units will be equals to

= $405,000 × 78,000 ÷ 84,000

= $376,071.43

So, the operating cash flow would be

= $376,071.43 - $180,000

= $196,071.43

b. The new degree of operating leverage equals to

=  $376,071.43 ÷ $196,071.43

= 1.918

Hence, the operating cash flow is $196,071 and the new degree of operating leverage is 1.918

5 0
3 years ago
Plutonic Inc. had $400 million in taxable income for the current year. Plutonic also had a decrease in deferred tax assets of $5
andrew-mc [135]

Answer:

Deferred tax is increased by $130 million

Explanation:

We have given income = $400 million

Company is subject to a tax rate of 40 %

So tax rate = 40 %

So current Tax = $400×40%= $160 Million

Decrease in deferred tax assets of 50 million result in increase in tax expense

Hence total Tax Expense= $160+$50= $210 Million

But it is given that expense is only $80 million

So change in deferred tax is increases by = $210 - $80 = $130

So deferred tax is increases by $130 million

6 0
3 years ago
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