Use This Information to Answer the Following Question Salaries Payable Would Be Recorded for
A) $12,976

question 95

Multiple Choice

Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15,2010.Payment occurs on January 20.
$\begin{array}{lrlr}\text { Gross payroll } & \$ 16,000 & \text { Federal income taxes withheld } & \$ 1,800 \\\text { Social security and Medicare rate } & 7.65 \% & \text { Federal unemployment tax rate } & .8 \%\\\text { State unemployment tax rate}&5.4\%\end{array}$ Salaries Payable would be recorded for

• A) $12,976.
• B) $10,760.
• C) $14,200.
• D) $11,984.

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Definitions:

Interest Income

Income earned from the lending of funds or depositing funds in interest-bearing accounts.

Interest Expense

The cost incurred by an entity for borrowed funds, often recognized in financial statements as a non-operating expense.

Amortization

The process of spreading out a loan into a series of fixed payments over time, where part of each payment goes toward the principal amount borrowed and part goes toward interest.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.