For Five Years, Maxine Had Been Regularly Receiving the Same

question 24

Multiple Choice

For five years, Maxine had been regularly receiving the same bill for $850 from Credit Landscaping. She didn't think she should pay it because they botched up the landscaping around her house. However now, after these five years she sends them a $425 check with a note saying; "Take this- it's all you're going to get." This move by Maxine will

• A) have no effect on the limitation time period.
• B) immediately give rise to a legal action.
• C) get her out of the liability.
• D) start the time all over again on the statue of limitations.
• E) spur Credit Landscaping to turn the balance owed over to a collection agency.

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Definitions:

Payroll Tax Expense

Taxes imposed on employers and employees, calculated as a percentage of salaries paid.

FICA Taxes Payable

Amounts owed by employers and employees for Social Security and Medicare, based on the Federal Insurance Contributions Act.

State Unemployment Taxes

Taxes imposed on the employer by states that provide benefits to employees who lose their jobs.

Employee's Withholding

The portion of an employee's wages withheld by the employer for payment of taxes and other deductions.