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According to a summary of payroll of Newman Publishing Co., $600,000 was subject to the 7.5% FICA tax. Also, $50,000 was subject to state and federal unemployment taxes.
a. Calculate the employer's payroll taxes, using the following rates: state, unemployment, 4.3%; federal unemployment, 0.8%.
b. Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes.
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