Grammy's Bakery Had the Following Information for the Pay Period

question 45

Multiple Choice

Grammy's Bakery had the following information for the pay period ending June 30: Assume:
FICA-OASDI applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Office Salaries Expense?

• A)Debit $550
• B)Credit $550
• C)Debit $500
• D)Credit $500

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Definitions:

Countercyclical Stock

A type of stock whose performance is inversely related to the overall economic cycle, often performing better during economic downturns.

Expected Return

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