Table 5-6 Shows an Assistant Professor's Salary and the Respective

question 139

Multiple Choice

Table 5-6 shows an assistant professor's salary and the respective price indexes for the years 1967 and 1997. Use the table to answer questions .
Table 5-6

-Refer to Table 5-6. Calculate the real income for an assistant professor in 1967.

• A) $2,381
• B) $9,524
• C) $10,000
• D) $42,000

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Definitions:

Withholding Allowances

A number that employees claim on a W-4 form that determines the amount of money withheld from their paycheck for taxes.

Federal Income Tax

The tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Semimonthly

Occurring twice a month or every half month, often used in the context of payroll or billing periods.

FICA Tax

Federal Insurance Contributions Act tax, which funds Social Security and Medicare, jointly paid by employees and employers.