Reference no: EM133043273

Questions -

Q1. Assume a FICA for Social Security rate of 6.2%, a FICA for Medicare rate of 1.45%, a federal income tax withholding rate of 20%, a state income tax withholding rate of 7%, a federal unemployment rate of 0.6%, and a state unemployment rate of 3%. Also assume the wage limit for social security is $142,800 and the wage limit for both FUTA and SUTA is $7,000. Ren is paid monthly and earns $15,000 per month. How much will Ren's net pay be for the month of November assuming the only deductions are required taxes?

Q2. Assume a FICA for Social Security rate of 6.2%, a FICA for Medicare rate of 1.45%, a federal income tax withholding rate of 20%, a state income tax withholding rate of 7%, a federal unemployment rate of 0.6%, and a state unemployment rate of 3%. Also assume the wage limit for social security is $142,800 and the wage limit for both FUTA and SUTA is $7,000. Connie is paid monthly and earned $6,000 in the first month of the year. How much will Connie's employer remit to the U.S. Treasury for federal taxes for only this one paycheck?

Q3. Which of the following is not a characteristic of the corporate form of organization?

Corporations and its stockholders are often subject to double taxation.

Public corporations are subject to more regulations than other forms of organization.

The financial statements of public corporations are not confidential.

None of these.

Stockholders enjoy a feature referred to as unlimited liability in which they are not responsible for corporate debts.

Q4. Assume a FICA for Social Security rate of 6.2%, a FICA for Medicare rate of 1.45%, a federal income tax withholding rate of 20%, a state income tax withholding rate of 7%, a federal unemployment rate of 0.6%, and a state unemployment rate of 3%. Also assume the wage limit for social security is $142,800 and the wage limit for both FUTA and SUTA is $7,000. Connie is paid monthly and earned $5,500 in the first month of the year. How much is her take-home pay assuming no other deductions other than the required tax deductions?

Q5. On July 1, Afghan Corporation declared a dividend to be paid on August 4. What is the effect on the financial statements because of the payment on August 4?

-None of these

-Liabilities decrease and equity increases

-Assets decrease and liabilities decrease

-Liabilities increase and profits decrease

-Liabilities increase and equity decreases