Eric's Gross Pay for the Week Is $2,050

question 65

Multiple Choice

Eric's gross pay for the week is $2,050.His deduction for federal income tax is based on a rate of 23%.He has no voluntary deductions.His yearly pay is under the limit for OASDI.What is the amount of FICA tax that will be withheld from Eric's pay? (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

• A)$471.50
• B)$156.83
• C)$628.33
• D)$130.15

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Definitions:

Sales Journal

A specialized accounting journal that records the company's sales transactions, typically on credit.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.

Purchases

Merchandise for resale. It is a cost.