Use the Following to Answer Questions

question 77

Multiple Choice

Use the following to answer questions:
Scenario: Accounting and Economic Profit
Rather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year, Tommy Wang quit his job, which paid $60,000 per year, and started Wang's Wicker Furniture Store. He rented a showroom for $20,000 for the year, purchased $60,000 in wicker furniture, and incurred costs of $40,000 for sales help and advertising. Instead of using the capital for his own business, he could rent it to a rival firm and earn $5,000 a year. In his first year, his revenue was $150,000.
-(Scenario: Accounting and Economic Profit) Look at the scenario Accounting and Economic Profit. What is the implicit cost of Wang's Wicker Furniture Store?

• A) $7,000
• B) $60,000
• C) $65,000
• D) $69,000

Calculate total deductions from employees' paychecks.

Understand the timing and requirements for depositing and reporting payroll taxes.

Identify the responsibilities of employers in terms of federal and state income tax withholdings.

Calculate retirement fund contributions based on gross earnings.

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Definitions:

Automation

The shift toward converting work that was traditionally done by hand to being completed by mechanical or electronic devices.

Obsolete

Referring to a product, service, or technology that has become outdated or no longer used, often because it has been replaced by newer alternatives.

Proactive Employers

Organizations or managers who anticipate future challenges or opportunities and act in advance to address them, rather than reacting to events as they happen.

Working Conditions

Encompasses the environment in which an individual works, including aspects like safety, hours, and physical demands.