Cowen Company began is operations in August of the current year. During Aug and Sept, the company paid wages of $2,450. For the last quarter of the year, the taxable wages paid amounted to $3,900. None of the employees were paid more than $ 7,000 this year.

A. Is Cowen company liable for the FUTA tax this year? Explain?

B What is the net FUTA tax ?