Shawn Earned $65,000

question 179

Essay

Shawn earned $65,000.If the total Social Security tax rate is 15.3% then how much was his social security tax? How much would his employer pay in social security taxes for Shawn? (Show all work.)

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Valuation Technique

Methods and procedures used to estimate the value of an asset, liability, or company, including discounting cash flow analysis and comparative market analysis.

Expense Recognition

The accounting principle that costs are recorded in the period they are incurred in and matched with the revenues they help to generate.

Revenue Recognition

The accounting principle that determines the specific conditions under which income becomes realized as revenue.