Brooks Company sells electronic devices with a one-year warranty. From past experience, Brooks is able to estimate the number of units that will require repair during the warranty period, and the total cost associated with the repairs is $277,000. Required: Select the best accounting approach for this item. Accrue loss/expense and disclose in financial statement footnotes Disclose in financial statement footnotes only No accounting required Clark Company has three employees. Its payroll information is given below. Earnings Prior October Employee to October Earnings Tom Ross $6,310 $1,420 Betty Williams 80,000 7,440 Amy Hernandez 3,300 830 Assume that the following tax rates are currently in effect. Tax Rate Ceiling FICA: OASDI 6.2% $128,400 Medicare 1.45% No ceiling FUTA 0.6% 7,000 SUTA 5.4% 7,000 (The table shows the effective FUTA rate after state credit.) Required: Compute Clark Company's payroll tax expense for October. Note: Round your answer to the nearest cent. Payroll Tax Expense: $