1. Assume the FUTA tax rate is 0.6% and the SUTA tax rate is 5.4%. Both taxes applied to the first $7000 of an employees pay. What is the total unemployment tax an EMPLOYEE must pay on annual wages of $40,000?

2. A company sold 10,000 TVs in July and estimated warranty expense for these TVs to be $25,000. During July, 80 TVs were serviced under warranty at a cost of $18,000. The credit balance in the Estimated Warranty Liability account at July 1 was $26,000. What is the companys warranty expense for the month of July? a. $51,000 c. $25,000 e. $18,000 b. $1,000 d. $33,000