In recording a companys payroll, the gross earnings were $50,000. From the gross earnings, $10,000 is withheld for income taxes, and $3750 is withheld for FICA( Social security and Medicare) taxes. The company has a responsibility to pay $2,000 for state and federal unemployment taxes. What dollar amount would Payroll Tax Expense be debited for in recording the payroll?

1. $2,000
2. $3,750
3. $5,750(answer)
4. $15,750

Answer-> C

Hi, can anyone show me how to solve this question step by step? I know the answer is C, but I want to know how to get to the answer. thanks in advance.