Mike Is Able to Complete a Tax Return in Two

question 56

Multiple Choice

Mike is able to complete a tax return in two hours earning a fee of $100.As an alternative, he could pitch in at a volunteer car wash washing four cars in one hour.His roommate Joe would take four hours to complete a tax return earning a $100 fee and also can wash four cars in one hour.Both individuals could benefit if

• A)Mike worked on tax returns for eight hours and paid Joe $5 for each car he washed
• B)Mike worked on tax returns for eight hours and paid Joe $10 for each car he washed.
• C)Mike worked on tax returns for eight hours and paid Joe $15 for each car he washed
• D)Joe worked on tax returns for eight hours and paid Mike $10 for each car he washed
• E)Joe worked on tax returns for eight hours and paid Mike $15 for each car he washed

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Definitions:

FICA Taxes

Federal Insurance Contributions Act taxes, which are payroll taxes in the United States used to fund Social Security and Medicare programs.

Payroll Deductions

Deductions from gross earnings to determine the amount of a paycheck.

Supervisors

Individuals who oversee the work of others, ensuring tasks are completed efficiently and effectively within a company or department.

Notes Payable

A liability on a company's balance sheet representing amounts owed to creditors or banks, typically due for payment within one year or less.