Use the Following Information to Calculate Cash Paid for Salaries

question 24

Multiple Choice

Use the following information to calculate cash paid for salaries: $$\begin{array} { | l | r | } \hline \text { Salaries expense } & \$ 79,000 \\\hline \text { Salaries payable, Jaruary 1 } & 6,400 \\\hline \text { Salaries payable, December } 31 & 3,320 \\\hline\end{array}$$

• A) $75,680
• B) $82,080
• C) $79,000
• D) $85,400
• E) $82,320

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Definitions:

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers.

Payroll Tax

A tax imposed on employers or employees, and is usually calculated as a percentage of the salaries that employers pay their staff.

Tax Collections

The process by which governmental authorities, such as the IRS in the United States, collect taxes from individuals and businesses.

Payroll Tax

Taxes imposed on employers or employees, usually calculated as a percentage of the salaries that employers pay their staff.