The Following Totals for the Month of June Were Taken

question 52

Multiple Choice

The following totals for the month of June were taken from the payroll register of Young Company: $\begin{array}{lr}\text { Sal aries expense } & \$ 15,000 \\\text { Social security and Medicare taxes withheld } & 1,125 \\\text { Income taxes withheld } & 3,000 \\\text { Retirement savings } & 500\\\text { Salaries subject to federal and state }\\\text { unemployment taxes of } 6.2 \text { percent }&4,000\end{array}$
The entry to record the accrual of employer's payroll taxes would include a debit to

• A) Payroll Tax Expense for $2,498
• B) Social Security and Medicare Tax Payable for $2,250
• C) Payroll Tax Expense for $1,373
• D) Payroll Tax Expense for $3,000

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Definitions:

Completed Contract Method

An accounting technique used for recognizing revenue and expenses on long-term projects only after the project is finished.

AMT Depreciation

Depreciation methods for the Alternative Minimum Tax purposes, which can differ from regular tax depreciation methods, often resulting in a slower expense recognition for AMT calculations.

Straight-line Method

A method of calculating depreciation and amortization by evenly spreading the cost over the useful life of an asset.

Personal Property

Tangible items and assets (excluding real estate) owned by an individual or business, such as vehicles, jewelry, and equipment.