Question
Sheffield Corp.'s payroll for the pay period ended October 31, 2021 is summarized as follows: Department PayrollTotal WagesFederal Income Tax WithheldAmount of Wages Subject to
Sheffield Corp.'s payroll for the pay period ended October 31, 2021 is summarized as follows:
Department
PayrollTotal
WagesFederal
Income Tax
WithheldAmount of Wages Subject
to Payroll TaxesF.I.C.A.UnemploymentFactory$73000$7000$68000$31000Sales210002000150002000Office1900030009000-$113000$12000$92000$33000
Assume the following payroll tax rates:
F.I.C.A. for employer and employee7.65% eachUnemployment3%
What amount shouldSheffieldaccrue as its share of payroll taxes in its October 31, 2021 balance sheet?
$8028.
$9708.
$14508.
$20028.
CoronadoProcesses is involved with innovative approaches to finding energy reserves.Coronadorecently built a facility to extract natural gas at a cost of $11.6million. However,Coronadois also legally responsible to remove the facility at the end of its useful life of twenty years. This cost is estimated to be $15million (the present value of which is $6.0million). What is the journal entry required to record the asset retirement obligation?
No journal entry required.
Debit Natural Gas Facility for $15000000and credit Asset Retirement Obligation for $15000000.
Debit Natural Gas Facility for $3400000and credit Asset Retirement Obligation for $3400000.
Debit Natural Gas Facility for $6000000and credit Asset Retirement Obligation for $6000000.
Carla VistaCo. bought a patent fromSandhillCorp. on January 1, 2021, for $921000. An independent consultant retained byCarla Vistaestimated that the remaining useful life at January 1, 2021 is15years. Its unamortized cost onSandhill's accounting records was $460500; the patent had been amortized for5years bySandhill. How much should be amortized for the year ended December 31, 2021 byCarla VistaCo.?
$0.
$46050.
$61400.
$92100.
n January 2021,Marigold Corp.estimated that its year-end bonus to executives would be $856000for 2021. The actual amount paid for the year-end bonus for 2020 was $776000. The estimate for 2021 is subject to year-end adjustment. What amount, if any, of expense should be reflected inMarigold's quarterly income statement for the three months ended March 31, 2021?
$194000.
$ -0-.
$856000.
$214000.
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