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Aspen Ski Resorts has 100 employees, each working 40 hours per week and earning $20 an hour. Although the company does not pay any health or ree tirement benefits, one of the perks of working at Aspen is that employees are allowed freskiing on their days off. Federal income taxes are withheld at 15% and state income taxes at
Required:Question 1. Compute the total salary expense, the total withholdings from employee salaries, and the actual direct deposit of payroll for the first week of January.Question 2. Compute the total payroll tax expense Aspen Ski Resorts will pay for the first week of January in addition to the total salary expense and employee withholdings calculated in Part 1.Question 3. How should Aspen Ski Resorts account for the free skiing given to employees on their days off?
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