Reference no: EM133042685

Questions -

Q1. Publisher Inc. has 1,000,000 shares of common stock authorized. In 2020, Publisher issued 400,000 shares. In 2021, Publisher reacquired 75,000 shares of its own stock. How many shares outstanding does Publisher Inc. have after the 2021 transaction?

a. None of these

b. 325,000 shares

c. 925,000 shares

d. 475,000 shares

e. 600,000 shares

Q2. 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?

a. Liabilities decrease and equity increases

b. Liabilities increase and profits decrease

c. Assets decrease and liabilities decrease

d. Liabilities increase and equity decreases

e. None of these

Q3. 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?

a. $9,802.50

b. $9,843.40

c. None of these

d. $8,507.90

e. $10,732.50