TEST TH QUESTION 12 Hilinois Company has a monthly gross payroll (paid on the last day of each month) of $172,000, which is subject to unemployment taxes (Federal at 0.8% and State at 5.4%). All earnings are subject to 7.65% FICA tax (combined Social Security and Medicare). Federal Income tax withholdings are 25%, and state income tax withholdings are 8% of total earnings. Assuming no individual employee has reached the maximum limit for Social Security tax or for unemployment tax, which of the following is not true on January 31? O A. Illinois Company will record a liability for State Income Taxes of $13,760. O B. Illinois Company will record a net payroll of $102,082. C. Illinois Company will record a liability for Federal Unemployment Taxes of $1,376. OD. Illinois Company will record a total liability for FICA Taxes of $13,158. QUESTION 13 According to U.S. GAAP, which criteria must be met in order to recognize a contingent liability? A. The obligation is certain to require payment at some point in the future. B. The obligation is probable. C. The obligation is estimable. D. Answers B and C Save