Answer:
(C) debit to Payroll Tax Expense for $1,148
Explanation:
"employer's payroll taxes" This means we are asked for the entry of the employer, not the employee.
The employer will contribute the same amount for FICA(medicare and social security) FUTA and SUTA
so the entry will be :
<u>payroll tax expense debit 1148</u>
FICA taxes payable credit 900
FUTA payable credit 32
SUTA payable credit 216
Answer:
The correct answer is A
Explanation:
Adam Smith is one of the first theorist who refer to the system of capitalism. Under this system, he asserts that when the person or an individual conduct or make a trade, they value what they bought more than they value what are exchanging for the commodity.
So, under this system, he believed that the fair as well as correct prices of the commodity or the goods will be determined through the competition among the businesses.
Answer:
D. lower than the expected real wage.
Explanation:
When individuals and firms agree on salaries and wages for their workforce they assume a certain level of inflation. If the inflation result higher than expected then the nominal increase in the wages which include a lower inflation premium ends up with a real yield lower than the agents expected.
This will make subsequent years infloation premium higher to avoid the further losses in the real level of wages
