Course: Income Tax Fundamentals

1. Maeda Compay has the following employees on the payroll:

Employee Name Marital Status Semi monthly payroll Witthholding allowances

Amal S $4,000 1

Miguel M $5,000 3

Byron S $4,600 2

Hiroko M $6,500 4

Using the information above:

a. Calculate the FUTA tax liability for 2013 . Assume that Maeda Company has paid all amounts due during the year.

b. If the payroll is consistent from quarter to quarter, how much would be remitted in FUTA taxes in each of the four quarters in

2013?

2. Quince Company has book of $120,000 properly determined in accordance with financial accounting principles. The following information

is also available:

* The company received a $10,000 divident from a large publicly-traded domestic corporation of which it owns less than 20%

* Income tax expense on the financial statements was $30,000

* Depreciation expense on the financial statements is $25,000 less than depreciation expense determined tax laws

* The company received life insurance proceeds of $15,000

* Charitable contributions of $20,000 were made.

Determine the "taxable income" of Quince Company.