Narrative 9-2
Use the Information Below to Solve the Following

question 109

Short Answer

Narrative 9-2
Use the information below to solve the following problems:
$$\begin{array} { l l l } & \text { Tax Rate } & \text { Wage Base } \\\text { Social security } & 6.2 \% & \$ 128,400 \\\text { Medicare } & 1.45 \% & \text { no limit } \\\text { FUTA } & .6 \% & \$ 7,000 \\\text { SUTA } & 5.4 \% & \$ 7,000\end{array}$$
-Refer to Narrative in your text 9-2. The SUTA rate for Montego Corporation is 5.4% and its FUTA rate is 6.0% less the 5.4% SUTA credit; .6%. If its monthly payroll is $153,720.00 and none was for payments to employees in excess of the $7,000.00 wage base, then what are the total FUTA and SUTA taxes for the payroll?

Identify the use and benefits of special financial services and endorsements.

Understand the process and importance of bank reconciliation.

Comprehend the differences between insured and non-insured financial products.

Recognize the purposes and benefits of different types of loans and rates.

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Definitions:

Required Rate

The minimum acceptable return on an investment, often used in capital budgeting to assess the viability of potential investments or projects.

Paid Dividend

The cash or stock distributed to shareholders from a company's earnings.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with guaranteed dividends, but without voting rights.

Par

A term that refers to a financial instrument trading at its face or nominal value.