1. Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA.

   Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers.

   Example 5-10

   Karlson Software Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2006 to 2015, inclusive, the company's total contributions to state unemployment compensation amounted to $14,695. For the calendar years 2016 to 2019, inclusive, the contribution rate for Karlson was 2.7%.

   The contributions of each employer are credited to an account maintained by the State Unemployment Compensation Commission. This account is credited with contributions paid into the account by the employer and is charged with unemployment benefits that are paid from the account. Starting January 1, 2020, the contributions rate for all employers in State H will be based on the following tax rate schedule:

   Reserve Ratio	Contribution Rate
   Contributions falling below benefits paid	7.0%
   0.0% to 7.9%	5.5%
   8.0% to 9.9%	4.5%
   10.0% to 11.9%	3.5%
   12.0% to 14.9%	2.5%
   15.0% or more	1.5%

   The annual payroll for calculation purposes is the total wages payable during a 12-month period ending with the last day of the third quarter of any calendar year. The average annual payroll is the average of the last three annual payrolls. The SUTA tax rate for the year is computed using the information available (benefits received and taxes paid) as of September 30 of the preceding year.

   The schedule below shows the total payroll and the taxable payroll for the calendar years 2016 to 2019.

   	Calendar Year
   	2016		2017		2018		2019
   	Total Payroll	Taxable Payroll	Total Payroll	Taxable Payroll	Total Payroll	Taxable Payroll	Total Payroll	Taxable Payroll
   First Quarter	$12,000	$12,000	$11,000	$11,000	$13,000	$13,000	$10,000	$10,000
   Second Quarter	11,750	11,750	11,500	11,400	12,750	12,700	9,300	9,300
   Third Quarter	12,500	12,250	12,750	12,400	12,200	12,000	9,350	9,350
   Fourth Quarter	13,000	12,500	12,500	12,200	14,000	13,750	—	—

   Unemployment benefits became payable to the company's qualified unemployed workers on January 1, 2006. Between that time and September 30, 2019, total benefits amounting to $15,100.90 were charged against the employer's account. Compute:

   In your computations, round amounts to the nearest cent. Round your final percentage answers to one decimal place.

   a. Contribution rate for 2020.
   %

   b. Rate for 2020 if $2,000 additional benefits had been charged by mistake to the account of Karlson Software Company by the State Unemployment Compensation.
   %

On January 8, the end of the first weekly pay period of the year, Regis Company's employees earned $24,760 of office salaries and $70,840 of sales salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,440 of medical insurance deductions, and $820 of union dues. No employee earned more than $7,000 in this first period.

Required:
1.1 Calculate below the amounts for each of these four taxes of Regis Company. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.
1.2 Prepare the journal entry to record Regis Company's January 8 employee payroll expenses and liabilities.
2. Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%.

Calculate below the amounts for each of these four taxes of Regis Company. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.)

• Record the employee payroll expenses and liabilities for the first weekly pay period of the year.

Note: Enter debits before credits.

Prepare the journal entry to record Regis’s employer payroll taxes resulting from the January 8 payroll. Regis’s state unemployment tax rate is 5.4% of the first $7,000 paid to each employee. The federal unemployment tax rate is 0.6%. (Round your answers to 2 decimal places.)

Journal entry worksheet

• Record the employer’s payroll expenses and liabilities for the first weekly pay period of the year.

Note: Enter debits before credits.

The Town of Quincy’s fiscal year ends on June 30. The following data relate to the property tax levy for the fiscal year ended June 30, 2017. The balance in Deferred Inflows—Property Taxes was $68,000 at the end of the previous year. This was recognized as revenue in the current year in a reversing journal entry. On July 1, 2016, property taxes in the amount of $8,650,000 were levied. It was estimated that 0.5 percent would be uncollectible. The property taxes were intended to finance the expenditures for the year ended June 30, 2017. October 31, $4,675,000 in property taxes were collected. December 31, $3,775,000 in additional property taxes were collected. Receivables totaling $9,450 were deemed to be uncollectible and written off. On June 30, $76,000 was moved from Revenues Control to Deferred Inflows, because it was not expected to be collected within 60 days.

A stock will give an annuity of $100 for the next 10 years from year 1, and then the annuity will be reduced by 5% each year from year 11 (into infinity). If the required rate of return is 8%, what is the price of the stock?

In a slow year, Deutsche Burgers will produce 2 million hamburgers at a total cost of $3.5 million. In a good year, it can produce 4 million hamburgers at a total cost of $4.5 million.

1. What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place.)
2. What are the variable costs when the firm produces 2 million hamburgers? (Enter your answer in millions.)
3. What is the average cost per burger when the firm produces 1 million hamburgers? (Round your answer to 2 decimal places.)
4. What is the average cost when the firm produces 2 million hamburgers?

The following data are available for Sellco for the fiscal year ended on January 31, 2020:

Required:
a. Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and Weighted average (using a periodic inventory system): (Round unit cost to 2 decimal places.)
   Cost of goods sold    Ending enventory

FIFO

LIFO

Weighted Average

b. Assume that net income using the weighted-average cost flow assumption is $13,300. Calculate net income under FIFO and LIFO. (Round unit cost to 2 decimal places.)

   NET INCOME

FIFO

LIFO

Peroni Company paid wages of $162,300 this year. Of this amount, $108,400 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent.

the rate 0.6% was used for the FUTA tax rate for employers.

a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions
b. Amount that Peroni Company would pay to the federal government for its FUTA tax

c. Amount that the company lost because of its late payments

In year 1, Peter and Shaline Johnsen moved into a home in a new sub division. Theirs was one of the first homes in the subdivision. In year 1, they paid $3,600 in real property taxes to the local government, $1,240 to the developer of the subdivision for an assessment to pay for the sidewalks, and $1,400 for real property taxes on land they hold as an investment. What amount of property taxes are the Johnsens allowed to deduct assuming their itemized deductions exceed the standard deduction amount before considering any property tax deductions?

From reading a company budgeted income statement for year 2019, it was found that
their net sales was $120,000. It costed $23,490 to make the goods. They have to spend
$12,000 and $18,000 on selling and administrative expenses respectively. They also paid
an interest on their debt in the amount of $6,510. The marginal tax rate was 35%. Find
the Operating income, net income after taxes and net profit margin ?