Berkley's Gross Pay for This Month Is $8,750

question 37

Multiple Choice

Berkley's gross pay for this month is $8,750. His gross pay year-to-date, prior to this month totaled $102,500. What is the amount of FICA withheld from Berkley's pay for this month? (Assume an OASDI rate of 4.2%, applicable on the first $110,100 earnings, and a Medicare rate of 1.45%, applicable on all earnings.)

• A)$319.20
• B)$126.88
• C)$446.08
• D)$367.50

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Definitions:

Disposal

The act of getting rid of an asset through sale, exchange, retirement, or destruction.

Continuing Operations

The segments or activities of a business that are expected to continue for the foreseeable future, distinguishing from those being discontinued or sold.

Discontinued Operations

Parts of a company's core business or product lines that have been disposed of or shut down, no longer contributing to ongoing financial results.

Income Statement

A financial document outlining a company's revenues, expenses, and profits over a specified period.