Kaye Barker Corp. is involved in a lawsuit resulting from a dispute with a jeweler. On February 13, 2021. judgment was rendered against Kaye Barker in the amount of 553 million plus interest, a total of $54 million (it involved A LOT of jewels Kaye Barker plans to appeal the judgment and its probable she will win in appeal. What is the dollar amount of incremental impact this contingent loss as on end of year 2021 income assume the appeal is still in process? QUESTION 2 Muenzemay Petroleum Co. offers its employees the option of contributing retirement funds up to 5% of their salaries, with the contribution being matched by Muenzemay. The company also pays 80of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows Wages and salaries $2,000,000 Employee contribution to voluntary retirement plan.... 84,000 * Medical insurance premium... 42,000 Life insurance premiums. 9,000 Federal income taxes to be withheld 400,000 Local income taxes to be withheld, 53,000 * Payroll taxes -FUTA 0.60% SUTA 5.40% Social Security tax 6.20% Medicare tax rate 1.459 * Assume that all employees cumulative wages do not exceed the relevant wage bases for Social Security and unemployment Question. What is the total debit Muenzemay makes to salaries expense related to this payroll show your answer as a positive number Kaye Barker Corp. is involved in a lawsuit resulting from a dispute with a jeweler. On February 13, 2021. judgment was rendered against Kaye Barker in the amount of 553 million plus interest, a total of $54 million (it involved A LOT of jewels Kaye Barker plans to appeal the judgment and its probable she will win in appeal. What is the dollar amount of incremental impact this contingent loss as on end of year 2021 income assume the appeal is still in process? QUESTION 2 Muenzemay Petroleum Co. offers its employees the option of contributing retirement funds up to 5% of their salaries, with the contribution being matched by Muenzemay. The company also pays 80of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows Wages and salaries $2,000,000 Employee contribution to voluntary retirement plan.... 84,000 * Medical insurance premium... 42,000 Life insurance premiums. 9,000 Federal income taxes to be withheld 400,000 Local income taxes to be withheld, 53,000 * Payroll taxes -FUTA 0.60% SUTA 5.40% Social Security tax 6.20% Medicare tax rate 1.459 * Assume that all employees cumulative wages do not exceed the relevant wage bases for Social Security and unemployment Question. What is the total debit Muenzemay makes to salaries expense related to this payroll show your answer as a positive number
