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MRI Company has one employee that makes $7,200 per month. FICA Social Security taxes are 6.2% and FICA Medicare taxes are 1.45% of gross pay.
The employee's federal income taxes withheld are $135 for the pay period. Based on this information, the financial statements affected by this transaction are:
Question 1: There is no effect on any statement since these transactions would affect the tax return not the company's financial statements
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