1.The Medicare tax is a component of the ________. (Points : 20)

employees state income tax Social Security (FICA) tax employees federal income tax federal unemployment tax

Question 2.2.A piece of manufacturing equipment is purchased on January 1, 20X1 for $75,000. The equipment is expected to have a useful life of 10 years. At the end of 10 years, management thinks they can sell the machine for scrap metal for $3,500. It is expected that the machine will be able to produce 250,000 units. In the first year, the machine produced 26,432 units. If the straight-line depreciation is used, how much depreciation will be recorded in year one? (Points : 20)

$7,559.55 $7,929.60 $7,150.00 $7,500.00

Question 3.3.Watson Company pays approximately $30,000 in property taxes per year. The bills are received in September and are paid in December. Watson chooses to accrue property tax expense each month throughout the year. After all the bills are received at the end of September, what would be a good estimate for the balance in the accrual account? (Points : 20)

$0 $15,000 $22,500 $30,000

Question 4.4.An oil well is purchased for $50,000,000. It is expected that the oil well will produce 1,000,000 barrels of oil with no residual value. The owner expects to drill from this oil well for the next 25 years. In year one, 30,000 barrels are extracted from the well. In year two, 38,000 barrels are extracted from the well. What value should be reported for this natural resource at the end of year two? (Points : 20)

$50,000,000 $46,000,000 $48,500,000 $46,600,000

Question 5.5.Drew earns an hourly wage of $22.00. He is paid overtime at a rate of 1.5 times his regular pay for any hours he works over 40 hours per week. Drew gets paid every two weeks. The following information is used to calculate his withholding deductions:

Insurance	$60.00
Federal withholding rate	15%
State withholding rate	6%
Social Security Tax withholding rate	5.65%
Charitable deductions	$5.00

For the two-week period ending June 10, 20X2, Drew worked 92 hours and earned at least 40 hours in each week. What is Drews gross pay for this period? (Points : 20)

$1526.43 $2,156.00 $2,024.00 $1,760.00