2. Employees' weekly gross earnings were $5,700, and their Federal income tax withholding was $1,121.50. Assuming the Social security tax rate is 6% and the Medicare tax rate is 1.5%, what is the net amount to be paid to employees?

a.$4,578.50

b.$4,151.00

c.$4,065.50

d.$3,809.00

4. Puzzles Company sells merchandise with a 1-year warranty. In Year 1, sales consisted of 3,800 units. It is estimated that warranty repairs will average $13 per unit sold, and 45% of the repairs will be made in Year 1 and 55% in Year 2. In the income statement for Year 1, Puzzles Company should show warranty expense of

a.$0.

b.$27,170.

c.$49,400.

d.$22,230.

5. On January 8, Lowrence Co. issued a $66,000, 120-day discounted note to Raines Bank. The discount rate is 6%. Assuming a 360-day year, what is the proceeds received?

a.$66,000

b.$62,040

c.$67,320

d.$64,680