Art Parrish,the Sole Employee of Parrish Sales,has Gross Salary for March

question 13

True/False

Art Parrish,the sole employee of Parrish Sales,has gross salary for March of $4,000.The entire amount is under the OASDI limit of $106,800,and thus subject to FICA.The total amount of FICA that will be recorded as company expense totals $612.

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Definitions:

CCA Class

A classification within the Capital Cost Allowance system in Canada, grouping assets with similar properties for depreciation purposes.

Net Advantage To Leasing

The benefits a company realizes from leasing assets rather than purchasing them, considering cost savings, tax advantages, and flexibility.

Estimated Life

The expected duration or lifespan of an asset, affecting depreciation calculations and investment decisions.

CCA Class

Capital Cost Allowance Class; categories used in Canadian income tax that determine the depreciation rate for different types of assets for tax purposes.