Brian Temple's Cumulative Earnings Are $102,000,and His Gross Pay for the Week

question 12

Multiple Choice

Brian Temple's cumulative earnings are $102,000,and his gross pay for the week is $5,300.If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%,what are his FICA-OASDI and FICA-Medicare taxes for the week?

• A)$297.60; $76.85
• B)$0; $0
• C)$31.00; $7.25
• D)$31.00; $76.85

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Definitions:

Optimum Initial Cash Balance

The ideal amount of cash a company needs on hand to operate efficiently without incurring excess costs or missing out on opportunities.

Monthly Disburses

The process of distributing or paying out funds from a budget or account, typically occurring on a monthly basis.

Miller-Orr Model

A financial model used to manage cash flow and determine optimal cash reserves for a company.

Optimal Upper Cash Limit

The maximum amount of cash a company determines is efficient to hold in reserve for covering transaction costs and contingencies.