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26. The data shown below represent the complete taxable income history for Confederacy Corporation. The tax rate was 35% throughout the entire period 2008 through 2015: Year Taxable Income 2008 $ 15,000 2009 $ 5,000 2010 $ 30,000 2011 $ 10,000 2012 $(50,000) 2013 $(10,000) 2014 $ 25,000 2015 $ 25,000 If the company always chooses the carryback, carryforward option, what is the tax liability for 2014?

A $8,750

B $0

C $1,750

D $5,250

27 Which of the following criteria is not required for the recognition of a liability for compensated absences under FASB ASC Topic 710?

A Payment of the obligation must be probable.

B Payment of the obligation will require the use of current assets.

C The compensation either vests with the employee or can be carried forward to subsequent years.

D The amount of the obligation must be estimable.

28 During the first week of February, Gabe Hopen earned $300. Assume that FICA taxes are 7.65 percent of wages up to $106,800, state unemployment tax is 5.0 percent of wages up to $13,000, and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Gabe has voluntary withholdings of $10 (in addition to taxes) and that federal and state income tax withholdings are $18 and $6, respectively. Using the information above, what amount is the check, net of all deductions, that Gabe received for the week's pay?

A $274.60

B $243.05

C $277.00

D $259.60

29 During the first week of February, Gabe Hopen earned $300. Assume that FICA taxes are 7.65 percent of wages up to $106,800, state unemployment tax is 5.0 percent of wages up to $13,000, and federal unemployment tax is 0.8 percent of wages up to $13,000. Assume that Gabe has voluntary withholdings of $10 (in addition to taxes) and that federal and state income tax withholdings are $18 and $6, respectively. Using the information above, what is the employer's payroll tax expense for the week, assuming that Gabe Hopen is the only employee?

A $40.35

B $24.00

C $17.40

D $28.00