True or False 1) FICA taxes are paid only by the employee. 2) An advantage of...
True or False
1) FICA taxes are paid only by the employee.
2) An advantage of leasing an asset rather than buying is that leasing improves cash flows by reducing the upfront cash needed to use an asset.
3) Bonds issued below face amount are said to be issued at a discount.
Homework Answers
1) FICA taxes are paid only by the employee.
Answer: False
Reason - FICA taxes are paid by the employee. and the employer
.
2) An advantage of leasing an asset rather than buying is that leasing improves cash flows by reducing the upfront cash needed to use an asset.
Answer: True
.
.3) Bonds issued below face amount are said to be issued at a discount.
Answer: True
Add Answer to:
True or False
1) FICA taxes are paid only by the employee.
2) An advantage of...
True or False -6. Employee payroll deductions include FICA taxes, income tax, and voluntary deductions such...
True or False
-6. Employee payroll deductions include FICA taxes, income tax, and voluntary deductions such as for pensions and charities. - 7. Employers report FICA Taxes and federal income tax withholdings using Form 941. - 8. An employer's payroll records include a payroll register for each pay period, payroll checks and statements of earnings, and individual employee earning reports. 9. Net pay is recorded as taxes payable.
TRUE/FALSE 1. Social Security taxes are levied equally on the employee and the employer. 2. Employee...
TRUE/FALSE 1. Social Security taxes are levied equally on the employee and the employer. 2. Employee benefits costs represent expenses to the employer in addition to the direct costs of salaries and wages. .3. Unearned revenues are classified as current liabilities 4. Each time a payroll is recorded, a separate journal entry usually is made to record the employer's FICA and state and federal unemployment taxes. 5. Since Jon Company has very little employee turnover, the company has received a...
true or false ____1 The Statement of Cash Flows is an optional disclosure for a set...
true or false ____1 The Statement of Cash Flows is an optional disclosure for a set of financial statements. ____2 The first step in preparing the Statement of Cash Flows is to determine the change in the long-term assets.. ____3 A statement of cash flows prepared by the indirect method will disclose the cash flows from specific operating activities, such as cash received from customers. ____4 Convertible bonds provide for the conversion of the interest rate being paid into a...
Thomas Longbow is the only employee of Presido, Inc. During the first week of January, Longbow...
Thomas Longbow is the only employee of Presido, Inc. During the first week of January, Longbow earned $1,200.00 and had federal and state income tax withholdings of $60.00 and $22.50, respectively. FICA taxes are 7.65% on earnings up to $117,000. State and federal unemployment taxes for the period are $75.00 and $12.00, respectively. What would be the amount of Longbow's payroll check for the first week of January? Multiple Choice 0 $1,200.00 $1,200.00 0 $1,025.70 0 $938.70 0 $1,108.20 Redmont...
5. Which of is a true statement as it relates to impairments of plant assets? a....
5. Which of is a true statement as it relates to impairments of plant assets? a. The assets are recorded at the book value of the asset b. The impairment amount is capitalized and depreciated along with the cost of the c The impairment amount is added to the plant asset account in the year the decline d. They are written down to the new fair value turing the year in which the dedine original asset of value occurs occurs...
2.(40 marks) State whether each of the following statements is True/False. Justify your answer. a) (5...
2.(40 marks) State whether each of the following statements is True/False. Justify your answer. a) (5 marks) Internal rate of return is the discount rate that balances the sum of present values of cash flows associated with the bond with its face value. b) (5 marks) To find the yield to maturity you must assume that investor is able to reinvest all payoffs from the bond at this same rate. c) (5 marks) In valuing a security, we only need...
1. Deferred taxes may be classified as either current or non-current under IFRS. True or false...
1. Deferred taxes may be classified as either current or non-current under IFRS. True or false 2 Under the liability approach, deferred taxes on the balance sheet are valued at the tax rate in that will be in effect when the temporary differences reverse. True or false 3. During the originating period of a temporary difference, pretax accounting income is defined as taxable income plus taxable amounts minus deductible amounts. true or false 4. Amanda Company sold an asset and...
TRUE OR FALSE 1. A company’s tax savings from its Writing Down Allowance (WDA) can be...
TRUE OR FALSE 1. A company’s tax savings from its Writing Down Allowance (WDA) can be higher than the taxes paid on its profits in a given year, resulting in post-tax cash flows exceeding pre-tax cash flows.
Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued...
Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $18,000,000 of 5-year, 10% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ebert Company receiving cash of $17,321,607. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an...
Sun City issues $42 million of bonds on January 1, 2021 that pay interest semiannually on...
Sun City issues $42 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: Cash Paid Interest Expense Decrease in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 Carrying Value $50,969,130 50,863, 65e 50,753,257 $1,890,000 1,890, eee $1,783,920 1,780,287 $106, ese 109,793 Required: 1. Were the bonds issued at face amount, a discount, or a premium? Premium Discount Face amount 2. What is the original issue...
True or False
-6. Employee payroll deductions include FICA taxes, income tax, and voluntary deductions such as for pensions and charities. - 7. Employers report FICA Taxes and federal income tax withholdings using Form 941. - 8. An employer's payroll records include a payroll register for each pay period, payroll checks and statements of earnings, and individual employee earning reports. 9. Net pay is recorded as taxes payable.
TRUE/FALSE 1. Social Security taxes are levied equally on the employee and the employer. 2. Employee benefits costs represent expenses to the employer in addition to the direct costs of salaries and wages. .3. Unearned revenues are classified as current liabilities 4. Each time a payroll is recorded, a separate journal entry usually is made to record the employer's FICA and state and federal unemployment taxes. 5. Since Jon Company has very little employee turnover, the company has received a...
Thomas Longbow is the only employee of Presido, Inc. During the first week of January, Longbow earned $1,200.00 and had federal and state income tax withholdings of $60.00 and $22.50, respectively. FICA taxes are 7.65% on earnings up to $117,000. State and federal unemployment taxes for the period are $75.00 and $12.00, respectively. What would be the amount of Longbow's payroll check for the first week of January? Multiple Choice 0 $1,200.00 $1,200.00 0 $1,025.70 0 $938.70 0 $1,108.20 Redmont...
5. Which of is a true statement as it relates to impairments of plant assets? a. The assets are recorded at the book value of the asset b. The impairment amount is capitalized and depreciated along with the cost of the c The impairment amount is added to the plant asset account in the year the decline d. They are written down to the new fair value turing the year in which the dedine original asset of value occurs occurs...
2.(40 marks) State whether each of the following statements is True/False. Justify your answer. a) (5 marks) Internal rate of return is the discount rate that balances the sum of present values of cash flows associated with the bond with its face value. b) (5 marks) To find the yield to maturity you must assume that investor is able to reinvest all payoffs from the bond at this same rate. c) (5 marks) In valuing a security, we only need...
Sun City issues $42 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: Cash Paid Interest Expense Decrease in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 Carrying Value $50,969,130 50,863, 65e 50,753,257 $1,890,000 1,890, eee $1,783,920 1,780,287 $106, ese 109,793 Required: 1. Were the bonds issued at face amount, a discount, or a premium? Premium Discount Face amount 2. What is the original issue...
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