MrMarshall Was Employed by IMP Inc

question 43

Multiple Choice

Mr.Marshall was employed by IMP Inc.until October,when he accepted a new position with Turine Inc.Mr.Marshall earned $129,000 compensation from IMP and $36,000 compensation from Turine.Which of the following statements is false?

• A)Turine must withhold Social Security tax from Mr.Marshall's $36,000 compensation.
• B)Turine must withhold Medicare tax from Mr.Marshall's $36,000 compensation.
• C)Mr.Marshall is entitled to an income tax credit for excess Social Security tax withheld by his employers this year.
• D)None of the above is false.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.

Industry Supply Curve

A graphical representation showing the total quantity of a good or service that businesses in a specific industry are willing and able to supply at various prices.

Price of An Input

The cost associated with one unit of a raw material or component used in the production of goods or services.

Perfectly Competitive Industry

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.