9 Total asset cost plus depreciation expense equals book val

9) Total asset cost plus depreciation expense equals book value. 9) Choose the one alternative that best completes the statement or MULTIPLE CHOICE. answers the question. 10 An employee earned $37.000 during the year working for an employer when the maximum limit for Social Security was $118,500 each calendar year. The FICA tax rate forSocialSecurity is 6.2% andl the FICAtax ratefor Medicarels 1.45% The employee\'s annual FICA taxes amount is: 10 A) $536.50. B) $2,294.00. C) $2,830.50. D) $1,757.50. E) $8,950.50. 11) All of the following statements related to recording warranty expense are true except: A) Recording estimated warranty expense complies with the full disclosure principle. B) The seller reports a warranty obligation as a liability. C) Recording estimated warranty expense complies with the matching principle. D) Warranty expense should be recorded in the period when the warranty service is performed E) Warranty costs are probable and the amount can be estimated.

Solution

9) False

Total Asset cost + Accumulated depreciation = Book Value

10) C) $2,830.50

FICA Tax = $37,000 * (6.2% + 1.45%) = $2,830.50

11) D) Warranty expense should be recorded in the period when the warranty service is performed.