Problem

On January 31, Giovanni Accountancy Corp. prepared its Employer’s Annual Federal Unemploym...

On January 31, Giovanni Accountancy Corp. prepared its Employer’s Annual Federal Unemployment Tax Return, Form 940. During the previous year, the business paid total wages of $396,500 to its nineteen employees. Of this amount, $128,692 was subject to FUTA tax. Using a rate of 0.8 percent, determine the FUTA tax owed and the balance due on January 31, 2013, when Form 940 was filed. A deposit of $750 was made during the year.

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