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1) The tax rate for FICA-social security is 6.2% and the tax rate for FICA-Medicare is
1.45%. Calculate the total amount of FICA withholding for an employee whose pay is
$2,400 and is entirely subject to these FICA taxes.
2)
For each of the capital budgeting methods listed below, place an X in the correct
column, indicating the measurement basis of each, the ability to make comparison
among projects, and whether each method reflects or ignores the time value of money.
3) Explain the responsibilities of and the accounting by employers for employee payroll
deductions.
4) A company had net income of $45,000, net sales of $390,000, and average total
assets of $250,000 for the current year. Calculate the company's profit margin, total
asset turnover, and return on total assets.
5) Columbia Corp. held 1,500 of Vianco common stock with a cost of $74,387. These
shares were classified as a long-term available-for-sale investment. It sold the shares on
December 13 for $55,275. Prepare the journal entry to record this sale.
