The auditors of TQ, Inc., a calendar-year corporation, obtained the selected information for years 1 and 2 located on the Financial Information tab. The auditors are performing analytical procedures relative to the expectations of expenses for year 2 and have established a materiality threshold of 5% of the year 2 account balance. For each of the accounts in column A below, consider the additional notes in column B and the information in the Financial Information tab, and:

In column C, enter the auditor's expectation of year 2 expense.

Round all amounts to the nearest dollar.

Consider each account independently.

Expense	Additional note	Auditors expectations
Bonus-expense	Bonus expense for year 2 is expected to be 7% of total prior-year wage and salary expense if total unit sales increase by ore that 5%
Short-term disability expense	Short-term disability expense for year 2 is expected to be 2% of the prior year wage and salary expense.
Office salary expense	Average salaries increased 4% effective July 1, year 2. Headcount was 40 in year 1 and increased to 48 on July 1, year 2.
401(k) match expense	TQ matches 50 of the first 6% of total current-year compensation (salaries,wages,and bonuses) for participating employees. Historically, 80% of TQs employees have participated in the 401(k) plan.
Hourly payroll tax expense	Historically, hourly payroll tax expense, excluding federal unemployment tax, has been 8% of total wages. In addition federal unemployment tax was expected to increase on October 1, year 2, from 1% to 2%. Total hourly payroll is expected to increase by 2%.
Health insurance expense	Total headcount was 200 employees for year 1 and 260 for year 2. Health insurance premium are expected to increase 12% in year 2.