Mission Company Has Three Employees $\text { The company is subject to the following taxes: }$

question 93

Multiple Choice

Mission Company has three employees:
$\begin{array}{lcc}&\text { Gross Pay through July}&\text { Gross Pay for August }\\\text { Smith } & \$ 3,200 & \$ 1,000 \\\text { Cain } & 25,800 & 3,500 \\ \text { Clark } & 94,600 & 13,100\end{array}$

$\text { The company is subject to the following taxes: }$




$\begin{array} { l c l } \text { Tax } & \text { Rate } & \text { Applied To } \\ \text { FICA-Social Security } & 6 . 2 0 \% & \text { First } \$ 106,800 \\ \text { FICA-Medicare } & 1.45 & \text { All grosspay } \\ \text { FUTA } & . 8 0& \text { First } \$ 7,000 \\ \text { SUTA } & 5.40 & \text { First } \$ 7,000 \end{array}$


What is the amount that Mission Company will withhold from Clark's gross pay?

• A)$ 946.35
• B)$1,002.15
• C)$1,814.35
• D)$6,234.75
• E)$812.20

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Definitions:

Nature Of The Business

Describes the fundamental operations and activities in which a business is engaged.

Allocation Of Losses

The process by which losses are distributed among various parties, such as insurance companies or individuals, often according to a pre-determined formula or agreement.

Judicial Determination

A decision made by a court or a judge regarding the outcome of a legal matter.

Capital Contribution

The act of providing assets or funds to a partnership or company by its owners or partners to support its operations or start-up.