QUESTION 3

Assume a FICA for Social Security rate of 6.2%, a FICA for Medicare rate of 1.45%, a federal income tax withholding rate of 20%, a state income tax withholding rate of 7%, a federal unemployment rate of 0.6%, and a state unemployment rate of 3%. Also assume the wage limit for social security is $142,800 and the wage limit for both FUTA and SUTA is $7,000. Connie is paid monthly and earned $5,000 in the first month of the year. How much is her take-home pay assuming no other deductions other than the required tax deductions?

3,067.50

None of these

$2,817.50

$3,267.50

$3,087.50

2 points

QUESTION 4

Publisher Inc. has 1,000,000 shares of common stock authorized. In 2020, Publisher issued 400,000 shares. In 2021, Publisher reacquired 75,000 shares of its own stock. How many shares outstanding does Publisher Inc. have after the 2021 transaction?

325,000 shares

600,000 shares

None of these

475,000 shares

925,000 shares

2 points

QUESTION 5

Assume a FICA for Social Security rate of 6.2%, a FICA for Medicare rate of 1.45%, a federal income tax withholding rate of 20%, a state income tax withholding rate of 7%, a federal unemployment rate of 0.6%, and a state unemployment rate of 3%. Also assume the wage limit for social security is $142,800 and the wage limit for both FUTA and SUTA is $7,000. Ren is paid monthly and earns $13,000 per month. How much will Ren's net pay be for the month of November assuming the only deductions are required taxes?

$9,843.40

$8,183.50

None of these

$8,495.50

$8,507.90

2 points

QUESTION 6

At the beginning of the current year, Symbol Corporation had $20,000 of dividends in arrears on preferred stock. This represents the dividend requirement for a four-year period. During the current year, common shareholders received a dividend distribution. How much in preferred dividends was paid during the current year?

$20,000

$30,000

$25,000

$40,000

Not enough information provided

2 points

QUESTION 7

On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current market price of $11. The stock was originally issued for $8. On August 22, Solo reissued the stock for $15. What is the overall effect of the February 13 and August 22 transactions on Solo's financial statements?

Assets increase and equity decreases by $200,000

Assets increase and equity increases by $200,000

None of these

Assets decrease and equity increases by $200,000

Assets decrease and equity decreases by $200,000