PIERS 811 Page 13 If an asset originally purchased for 75000

PIERS 8-11 Page 13. If an asset originally purchased for $75,000 had accumulated depreciation totaling $20,000 what is the amount of gain or loss on the sale of the asset if the asset is sold for $60,000? All payroll questions share the same general information regarding payroll taxes: FICA taxes include both Social Security and Medicare taxes 6.0% Social Security tax rate on all earnings 1.5% Medicare tax rate on all earnings 54% State unemployment tax rate on the first $7,000 in earnings 0.8% Federal unemployment tax rate on the first $7,000 in earnings An employee receives an hourly rate of $18, with time and one half for all hours in excess of 40 during the week. The employee\'s payroll data for the current week are as follows: Hours worked, 46 Federal income tax withheld, $190 Cumulative earnings are zero as this is the first pay period of the year. 14. I. What is the gross pay for the employee? II. What are the total deductions? III. What is the net pay for the employee? IV. What is the employer\'s total payroll tax expense for this employee during this one pay period?

Solution

Question no 13

Gain or loss on sale of asset

Net Asset value at the time of sale = purchase cost - Total accumulated depreciation =$75000 - $20,000 =$55, 000

Sale value of the asset =$60, 000

Less: net asset value =$55, 000

Gain /(loss) on sale =$5000