Question
1. Cohen, Inc, an S corporation, earns taxable income of $200,000 before shareholder/employee's salaries and pays the only employee/shareholder, Ryan, a salary of $80,000. How
1. Cohen, Inc, an S corporation, earns taxable income of $200,000 before shareholder/employee's salaries and pays the only employee/shareholder, Ryan, a salary of $80,000. How much Social Security and Medicare tax, respectively, does the corporation pay on Ryan's salary?
A. $7,961; 2,900
B. $9,920; 2,320
C. $4,960; 1,160
D. $ -0; $ -0
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
