In 2019, Willow Corporation Had Three Employees

question 45

Multiple Choice

In 2019, Willow Corporation had three employees. Two of the employees worked full-time and earned salaries of $25,000 each. The third employee worked part-time and earned $4,000. The employer timely paid state unemployment tax equal to 5.4 percent of each employee's wages up to $7,000. How much unemployment tax was paid to the state from Willow Corporation for 2019?

• A)$136
• B)$168
• C)$918
• D)$972
• E)$1,134

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Definitions:

Taxable Bonds

Bonds whose interest payments are subject to federal, state, or local income taxes.

Exercise Price

The cost at which an option's holder may purchase (for a call option) or sell (for a put option) the base asset.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a set price within a specified time.

Stock Split

An action by a company to divide its existing stock into multiple shares to boost the liquidity of the shares, although the overall value of the shares remains the same.