Aimee Is a Salaried Nonexempt Employee Who Earns an Annual

question 65

Multiple Choice

Aimee is a salaried nonexempt employee who earns an annual salary of $52,500 for a 38-hour workweek,paid biweekly.The employer pays overtime for any hours worked in excess of 38 per week.During a pay period,she worked 86 hours.She has requested that she take compensatory time in lieu of paid overtime.How much compensatory time should she receive,assuming that her firm approves the compensatory time?

• A)10 hours
• B)12.5 hours
• C)15 hours
• D)20 hours

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Definitions:

Off-Balance Sheet Financing

Financial obligations not recorded on the balance sheet of a company, used to keep debt levels low from a reporting perspective.

Financial Leverage

The use of borrowed funds in order to amplify returns from an investment.

Leasing

A financial arrangement where a firm or individual obtains the use of an asset for a specific period in exchange for payment, typically without owning the asset.

Tax Deduction

An eligible expense that can reduce an individual's or company's taxable income.