Jason's Gross Pay for the Week Is $1,300

question 70

Multiple Choice

Jason's gross pay for the week is $1,300.His yearly pay is under the limit for OASDI.Assume that the rate for state and federal unemployment compensation taxes is 6% and that Jason's year-to-date pay has not yet exceeded the $7,000 cap.His yearly pay is under the limit for OASDI.What is the total amount of payroll taxes that his employer must record as payroll tax expenses? (Do not round your intermediate calculations.Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. )

• A)$73.45
• B)$80.60
• C)$177.45
• D)$159.93

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Definitions:

Statement of Financial Position

A financial document presenting an entity's assets, liabilities, and equity at a specific date, more commonly known as a balance sheet.

Prepayment Accounts

Accounts that reflect payments made in advance for expenses that will be incurred in future periods, treated as assets until used.

Supplies Expense

Costs associated with the consumable items that are used in the daily operations of a business and not intended for resale.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial report.