In December 2010, Bob Cratchit worked for Scrooge & Marley and earned 1,000. Federal income tax withholding is 10. The FICA rate is 6.2 and the Medicare tax is 1.45. What is Bob's gross pay?
A) 1,000
B) 823.50
C) 900
D) 923.50
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Q. 2) During times of rising prices, which of the following is notan accurate statement?
a. Average costing will yield results that are between those of FIFO and LIFO.
b. LIFO will result in a higher cost of merchandise sold than FIFO.
c. FIFO will result in a higher net income than LIFO.
d. LIFO will result in higher income taxes than FIFO.
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Q. 3) Identify the three acceptable depreciation methods discussed in the textbook.
A) straight-line, capitalization of expense, and activity methods
B) straight-line, operating, and accumulated methods
C) activity, carrying value, and straight-line methods
D) double-declining balance, straight-line, and activity methods
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Q. 4) The user manual gives detailed instructions to computer operators and to data control about a particular application.
Indicate whether the statement is true or false
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Q. 5) Persons earning self-employment income of 400 or more must pay a self-employment tax.
a. True
b. False
Indicate whether the statement is true or false
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Q. 6) On January 1, 2011, Beyers Company pays 205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of 5,000.
Calculate the book value of the equipment that will be reported on the balance sheet dated December 31, 2012.
A) 205,000
B) 165,000
C) 160,000
D) 200,000
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