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Exercise 1 Payroll Expense and Liabilities Amazing Advertising has an annual payroll of $125,000. In addition, the company incurs payroll tax expense of 8%. At
Exercise 1 Payroll Expense and Liabilities Amazing Advertising has an annual payroll of $125,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Amazing Advertising owes salaries of $9,500 and FICA and other payroll tax of $920. The company will pay these amounts early next year. 1. Show what Amazing Advertising will report for the foregoing on its income statement for the year and on its year-end balance sheet.
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