Question 13 The company paid the following wages to employees this pay period. $40,000 5.000 6% Gross wages Federal income tax withheld Social Security tax Medicare tax State unemployment tax Federal unemployment tax 1.5% 0.8 Social security taxes are computed on the first $132,900 of wages. Unemployment taxes are computed on the first $7,000 of wages. One employee is hired this pay period. His wages totaled $749. All state and federal unemployment taxes will be calculated on the new employee's wages because all other employees have cared more than $7,000. No employee has earned more than $132,900 this year. Caleulate the Medicare tax. $450 $600 5550 $500 Question 29 A fixed asset with a cost of $40,000 and accumulated depreciation of $38,000 is sold for $1,000. Which of the following statements is true? The book value of the asset is greater than the sales price The asset account must be credited for $2,000 There is a gain on the exchange Cash of $1,000 should be credited Question 3 Amortization Expense would be reported in the Other Income and Expense section of the Income Statement. True False