Molly Flynn, an Accountant at Coor Company, Earned $107,400 from January

question 42

Short Answer

Molly Flynn, an accountant at Coor Company, earned $107,400 from January to June. In July, Molly earned $4,600. Assume a tax rate of 6.2% for Social Security on the first $110,100 and a Medicare rate of 1.45%. How much is the tax for Social Security and Medicare?

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Definitions:

Equipment

Equipment refers to the tools, machinery, and other durable assets used by a company in its operations.

Supplies

Supplies are consumable items used in the daily operations of a business, such as office or cleaning materials, that are not resold to customers.

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business.

Petty Cash Fund

A small amount of cash kept on hand for making minor payments.