Art Panache, the Sole Employee of Panache Sales, Has Gross

question 6

True/False

Art Panache, the sole employee of Panache Sales, has gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. His year-to-date pay has already exceeded the $7,000 cap for FUTA and SUTA. The journal entry in the payroll cycle to record the employer's payroll tax expense includes a credit to FICA-OASDI Taxes Payable for $310. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.)

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Definitions:

Organ of Corti

A structure located on the basilar membrane of the cochlea in the inner ear, responsible for the transduction of sound vibrations into electrical signals.

Cranial Nerve VIII

The vestibulocochlear nerve, responsible for hearing and balance.

Hearing

The faculty of perceiving sounds, which occurs when sound waves are converted into electrical signals and interpreted by the brain.

Middle Ear

The section of the ear between the eardrum and the oval window, containing the three auditory ossicles that transmit sound.