Isabelle's Gross Pay for the Week Is $850

question 148

Multiple Choice

Isabelle's gross pay for the week is $850. Her deduction for federal income tax is based on a rate of 19%. She has voluntary deductions of $135. Her yearly pay is under the limit for OASDI. What is the amount of FICA-Medicare Tax deducted from her pay? (Assume a FICA-OASDI Tax of 4.2% and FICA-Medicare Tax of 1.45%.)

• A)$198.03
• B)$12.33
• C)$96.47
• D)$209.53

---

Definitions:

Spot Rate

The current market price to immediately exchange one currency for another, often used for immediate currency trades.

Forward Contract

A customizable financial contract between two parties to buy or sell an asset at a specified future date and price.

Accounts Receivable

The amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Swiss Francs (CHF)

The currency of Switzerland, widely recognized for its stability and being a safe-haven currency in times of financial uncertainty.