Mahmet Earned Wages of $118,700 During 2016

question 91

Multiple Choice

Mahmet earned wages of $118,700 during 2016.He is single and claims two withholding allowances.How much will Mahmet's employer withhold in Medicare taxes for the year?

• A)$1,711.00.
• B)$1,718.25.
• C)$1,722.60.
• D)$1,721.15.

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Definitions:

Transfer Price

The price at which goods or services are transferred between departments or divisions within the same company.

Increase in Income

A rise in the amount of money received, especially by a business or individual, over a certain period.

Variable Cost

A cost that varies with the level of output or production volume, such as materials and labor.

Transfer Price

The price at which goods or services are sold between divisions within the same company or between affiliated companies.