Author Question: In December 2010, Bob Cratchit worked for Scrooge & Marley and earned 1,000. Federal income tax ... (Read 106 times)

jwb375 · **on:** Jul 5, 2018

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.

How much payroll tax expense for Bob's December salary will be reported on Scrooge & Marley's income statement for the year ended December 31, 2010?
A) 76.50
B) 176.50
C) 153.00
D) 306.00

Question 2

If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costingwill yield the largest net income?
a. average cost
b. LIFO
c. FIFO
d. weighted average