In Describing FICA Taxes, Which (If Any) of the Following

question 32

Multiple Choice

In describing FICA taxes, which (if any) of the following statements is incorrect?

• A)The base amounts for 2018 probably will increase from the 2017 amounts.
• B)The base amounts for the Social Security and Medicare portions are the same.
• C)If both spouses work, excess FICA taxes need not result.
• D)Excess FICA taxes can be claimed as an income tax credit.

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Definitions:

Capital Stock

Capital stock is the total amount of physical, non-consumable goods, or financial assets that a company uses for production of goods or services, including buildings, machinery, and equipment.

Investment Project

A specific plan or initiative undertaken by a business or organization involving capital investment aimed at achieving certain financial or strategic goals.

Interest

The cost paid by a borrower for the use of borrowed money, or the income earned by an investor on their investment.

Inventory

The total amount of goods and materials held in stock by a business, intended for sale or production purposes.