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Gainesville Truck Center This company has a weekly payroll of $10,000 for its employees who work Monday through Friday, Federal and come taxes are withheld

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Gainesville Truck Center This company has a weekly payroll of $10,000 for its employees who work Monday through Friday, Federal and come taxes are withheld in the amounts of $1,700 and $400, respectively, and FICA taxes are withheld at a mandatory rate of 7.65% (6.2% for Social Security and 1.45% for Medicare). In addition, the federal and state unemployment taxes are applied at rates of 2% and 5%, respectively. The company's year-end is December 31 15. Refer to Gainesville Truck Center. Which of the following statements is true regarding the unemployment taxes to be recorded? a. $700 of unemployment taxes will be withheld from employee paychecks. b. $700 of unemployment tax expenses will be included on the income statement. c. $1,400 of unemployment taxes payable will be included on the balance sheet. d. $1,400 of unemployment tax expenses will be included on the income statement 16. Refer to Gainesville Truck Center. Which of the following statements is true regarding the FICA taxes that must be recorded? a. Social Security tax expense will be debited in the amount of $1,240. b. Medicare tax expense will be debited in the amount of $290. c. Social Security tax expense will be debited in the amount of $620. d. Medicare taxes payable will be credited in the amount of S1,530 17. During the year, Fisher Apartments purchased an apartment building to rent to university students. It cost the company $250 to repair damage done by a tenant to one of its units. How should this cost be recorded? a. It should be recorded as part of the asset account. b. It should be recorded as repair and maintenance expense. . It should not be recorded as the tenants will be charged for the damage. d. It should not be recorded since this is an immaterial amount to the landlord. 18. GT Company has 5200 in cash, $500 in accounts receivable, and $700 in inventory. The company also has $200 in accounts payable and $200 in unearned sales revenue. What is the company's quick ratio? 1.75 b. 2.25 c. 3.00 d. 3.50 19. A company purchased a patent for S100,000 at the beginning of the current year which it believes has an expected useful life of 5 years. The patent has a legal life of 20 years. How much amortization expense should be recorded in the current year? 4. SO b. $5,000 c. $20,000 d. $100,000

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