Mahmet Earned Wages of $118,700 During 2016

question 35

Multiple Choice

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much FICA tax is Mahmet's employer responsible to remit in 2016?

• A)$18,136.30.
• B)$18,155.30.
• C)$18,148.70.
• D)$18,161.10.

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Definitions:

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount, in exchange for immediate cash.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Non-Current Assets

Long-term resources owned by a company, such as property, plant, and equipment, expected to provide economic benefits beyond one year.

Noncurrent Asset

Long-term resources owned by a company, expected to provide value for more than one year, such as property, plant, and equipment.