Part 1

Please examine the current liabilities on the Balance Sheet and identify those that are definitely determinable and those that are probably estimates. Does the corporation have any liabilities with respect to pensions, vacation pay, or warranties? Please see the notes to the financial statements for details with respect to these liabilities. Please let us know what a contingent liability is and if your company has any contingent liabilities.

Part 2

Employees are subject to taxes withheld from their paychecks. Please indicate the federal taxes that are withheld from most employee paychecks. Please let us know why deductions from employees earnings are classified as liabilities for the employer.

Responses to Instructor

Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.

Responses to Classmates

When responding to classmates this week, please select two of the taxes listed below and let them know whether those taxes generally apply to employees only, employers only, or both employees and employers:

Federal Income Tax

Medicare Tax

Social Security Tax

Federal Unemployment Compensation Tax

State Unemployment Compensation Tax