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  3. 86) the current futa tax rate is 0.6%, and the sut

86) The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%....

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Accounting

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86) The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $7,000 of an employee's pay. Assume that an employee earned total wages of S9,900. What is the amount of total unemployment taxes the employer must pay on this employee's wages? A) $336.00 B) S420.00. C) S534.60. D) S594.00 E) S0.00 Answer 87) Estimated liabilities commonly arise from all of the following except: B) Vacation benefits. C) Income taxes. D) Employee benefits. E) Unearned revenues. 88) A company sold S12,000 worth of bicycles with an extended warranty. The company's experience is that warranty expense averages 2% of sales. The company should: A) Consider the warranty expense a remote liability since the rate is only 2%. B) Recognize warranty expense at the time the warranty work is performed. C) Recognize warranty expense and liability in the year of the sale. D) Consider the warranty expense a contingent liability E) Recognize warranty liability when the company purchases the bicycles

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