Ocean's Auction House's Payroll for April Includes the Following Data

question 43

Multiple Choice

Ocean's Auction House's payroll for April includes the following data: $$\begin{array} { | l | r | } \hline \text { Gross earnings } & \$ 2,900 \\\hline \text { Salaries subject to FICA: } & \\\hline 6.2 \% \text { OASDI } & 2,550 \\\hline 1.45 \% \text { Medicare } & 3,000 \\\hline \text { Salaries subject to unemployment: } & \\\hline 0.8 \% \text { FUTA } & 2,000 \\\hline 2.0 \% \text { SUTA } & 2,000 \\\hline \text { Other deductions include: } & 500 \\\hline \text { Federal income tax } & 300 \\\hline \text { State income tax } & \$ 20 \\\hline\end{array}$$ What is the gross pay?

• A)$1,998.40
• B)$1,942.40
• C)$2,900.00
• D)$2,798.40

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Definitions:

Capital Lease

A lease agreement in which the lessee essentially acquires all the risks and rewards of ownership, akin to a financial purchase.

Operating Lease

A leasing agreement for the use of an asset, where the lessee does not assume the risk of ownership.

Benefits and Risks

An assessment of the positive outcomes (benefits) and potential negative outcomes (risks) associated with a decision or action.

Straight-Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal installment.