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According to a payroll register summary of Frederickson Company, the amount of employees' gross pay in December was $888,200, of which $83,400 was not subject to Social Security taxes of 6.2% and $783,400 was not subject to state and federal unemployment taxes.
Determine the employer's payroll tax expense for the month, using the following rates: FICA 7.65%, state unemployment 5.4%, and federal unemployment 0.8%.
Prepare the journal entry to record December payroll tax expense.
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