Use the Following Information to Answer the Following Questions

question 96

Multiple Choice

Use the following information to answer the following questions.
The following totals for the month of April were taken from the payroll register of Magnum Company.

The entry to record accrual of employer's payroll taxes would include a

• A)debit to Payroll Tax Expense for $248
• B)debit to FICA Taxes Payable for $1,800
• C)credit to Payroll Tax Expense for $248
• D)debit to Payroll Tax Expense for $1,148

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Definitions:

Lease Revenue Recognition

The process of recognizing income earned from leasing out assets over the lease term.

Lease Liability

An obligation representing the present value of lease payments due over the lease term by the lessee.

Executory Costs

Ongoing operational expenses related to a leased asset, typically including insurance, maintenance, and taxes, that are usually paid for by the lessee.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.