Andie Earned $680

question 16

Multiple Choice

Andie earned $680.20 during the most recent weekly pay period.She is single with 3 withholding allowances and needs to decide between contributing 2.5% and $25 to her 401(k) plan.If she chooses the method that results in the lowest taxable income,how much will be withheld for federal income tax (based on the following table) ?

• A) $52.00
• B) $60.00
• C) $49.00
• D) $47.00

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Definitions:

Sales Revenue

The overall amount of money a business earns through the sale of products or services, prior to deducting any costs.

Cash Account

An account that records all transactions involving cash inflows and outflows.

Bank Statement

A document provided by a bank, summarizing the transactions that occurred in an account over a period.

Accrual Accounting

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash transaction occurs.