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Preston Co., which has a taxable payroll of $500,000, is subject to Federal Unemployment Tax Act (FUTA) tax of 6. 2% and a state contribution

Preston Co., which has a taxable payroll of $500,000, is subject to Federal Unemployment Tax Act (FUTA) tax of 6. 2% and a state contribution rate of 5. 4%. However, because of stable employment experience, the company's state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Preston Co.?

a

$58,500

b

$41,000

c

$20,000

d

$14,000

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