The Preparation Cook at the Home Kitchen Catering Company Receives

question 64

Short Answer

The preparation cook at The Home Kitchen Catering Company receives a salary of $437 per week, plus a commission of 1.4% on all the catered party business. In a recent week, the catered party business amounted to $14,400. Deducted from her gross wages were the following: FICA tax $65.55, federal withholding tax $131.10, and city income tax $13.11. What was her net pay? $_______________

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Definitions:

Transactions Demand

Transactions demand refers to the amount of money that people hold for the purpose of making everyday purchases and transactions.

Medium of Exchange

This refers to an item that is widely accepted in exchange for goods and services, facilitating trade by averting the inefficiencies of a pure barter system.

Fractional Reserve Banking

A banking system where banks hold a fraction of deposits as reserves and use the rest for lending purposes.

Total Deposits

The sum of all money deposited in a bank by its customers.