In December 2011,Homer Simpson Worked for Springfield Power and Earned

question 86

Multiple Choice

In December 2011,Homer Simpson worked for Springfield Power and earned $5,000.Federal income tax withholding is 15%.The FICA rate is 6.2% and the Medicare tax is 1.45%.How much payroll tax expense will Springfield Power record when it pays these taxes?

• A)$750
• B)$382.50
• C)$1,132.50
• D)$765

---

Definitions:

Deficit

The amount by which expenses exceed income or liabilities exceed assets.

Dividend Yield Ratio

An indicator of the yearly dividends paid by a corporation as a proportion of its stock price.

Dividends Per Share

The total dividends declared by a corporation for each outstanding share of common stock, reflecting the distribution of earnings to shareholders.

Market Price

The current price at which an asset or service can be bought or sold on the open market.