An employee has year$-$to$-$date earnings of $$41,050.$ The employee's gross pay for the next pay period is $$4,561.$ Assuming a FICA$--$OASDI rate of $6\mathrm{.}2\%$ and FICA$-$Medicare rate of $1\mathrm{.}45\%,$ how much FICA tax will be withheld from the employee's pay? Round to the nearest whole dollar

a$.$ $$349$

b$.$ $$283$

c$.$ $$66$

d$.$ $$698$

Contingent liabilities that are probable and can be estimated are...

a$.$ Reported on the balance sheet

b$.$ Reported on the income statement

c$.$ Reported only when paid with cash

d$.$ Are not required to be disclosed

Axel Brick Company has a lawsuit pending from a customer claiming $$100,000$ in damages. Axel's attorney advises the likelihood the customer will win the lawsuit is reasonably probable. GAAP requires at a minimum that this contingent liability be$...$

a$.$ Disclosed in a note to the financial statements

b$.$ Record as a liability on the balance sheet

c$.$ Record as an expense on the income statement

d$.$ No disclosure or journal entry required