The act that requires most employers to withhold certain amounts from employees' earnings for contributions to the Social Security and Medicare programs is called the
a. Federal Unemployment Tax Act.
b. Federal Withholding Tax Act.
c. State Unemployment Tax Act.
d. Federal Insurance Contributions Act.
Question 2
All of the following payments were made by UIB Co. for machinery the company bought and used during the year. Which of these expenditures should NOT be capitalized?
A) a payment made to install the machinery at the factory
B) the cost of electricity to operate the machine for the first year of use
C) the cost of insurance while the machine was in transit from the seller's warehouse
D) the costs of testing the machine in preparation for use
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