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Indicate on the blanks below the letter of the type of activity (O = operating activity,F = financing activity,I = investing activity,N = noncash transaction)each of the following transactions represents.
_____ 1.Firm sold 8,000 shares of its own common stock for cash.
_____ 2.Sold $200,000 worth of products for cash.
_____ 3.Paid $120,000 dividend.
_____ 4.Received $1,500 in interest income.
_____ 5.Exchanged 6,000 shares of stock for 15-year bonds.
_____ 6.Paid $121,000 to the U.S.Treasury for income taxes.
FICA Taxes
Federal Insurance Contributions Act taxes, which are payroll taxes deducted to fund Social Security and Medicare programs.
Federal Income Taxes
Taxes levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.
Allocated Tips
Tips that are assigned to an employee by their employer, typically in industries where tipping is customary, and are reported for tax purposes.
Medicare Taxes
Medicare Taxes are federal payroll taxes that fund the Medicare program, typically deducted from an employee's paycheck.
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