An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400 of earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employees pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January?

$841.50

• $420.75

• $464.75

• $602.75

• $750.75

The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$	132,500
Cash dividends declared for the year		52,500
Proceeds from the sale of equipment		87,500
Gain on the sale of equipment		8,300
Cash dividends payable at the beginning of the year		24,500
Cash dividends payable at the end of the year		27,800
Net income for the year		98,500

What is the ending balance for retained earnings?

• $187,000.

• $178,500.

• $289,000.

• $261,000.

• $208,500.

Green Company reports depreciation expense of $47,000 for Year 2. Also, equipment costing $161,000 was sold for a $5,700 gain in Year 2. The following selected information is available for Green Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.

At December 31	Year 2			Year 1
Equipment	$	645,000		$	806,000
Accumulated Depreciation-Equipment		456,000			535,000

• $40,700.

• $35,000.

• $82,000.

• $47,000.

• $29,300.