The Following Data Is for the January 19 Pay Date

question 24

Multiple Choice

The following data is for the January 19 pay date for Waryzbok Inc.:

Which of the following represents the missing Social Security and Medicare taxes,assuming that the health insurance is qualified under Section 125?

• A)Social Security tax,$746.66;Medicare tax,$174.62
• B)Social Security tax,$188.31;Medicare tax,$805.19
• C)Social Security tax,$204.15;Medicare tax,$792.35
• D)Social Security tax,$792.35;Medicare tax,$204.15

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Definitions:

Substitution Effect

The change in demand for a good or service caused by a change in its price, leading consumers to substitute it with other goods or services.

Income Effect

The change in consumer's purchasing power due to a change in real income, affecting the quantity of goods they can buy.

Price Change

A variation in the cost of goods and services in a market, influenced by factors such as supply and demand, inflation, or governmental policy.

Charitable Giving

The act of giving money, goods, or time to the unfortunate, either directly or by means of a charitable trust or other worthy cause.