Crimson Inc. had a gross payroll of $51,000. The FICA tax was 6.95% of the gross payroll. Federal and state withholding was $2,250 and $460, respectively. Which of the following amounts will be reported as a decrease on the statement of cash flows of the company? Round your answer to whole number. a. $44,746 b. $51,000 c. $50,166 d. $51,835
Crimson Inc. had a gross payroll of $51,000. The FICA tax was 6.95% of the gross payroll. Federal and state withholding was $2,250 and $460, respectively. Which of the following amounts will be reported as a decrease on the statement of cash flows of the company?
Round your answer to whole number.
a. $44,746
b. $51,000
c. $50,166
d. $51,835
Answer:
Option A: $44746
Step-by-step explanation:
Step 1:
6.95% of $51000 = 3544.5
Federal & state Tax = $2250 + $460 = $2710
Total tax deducted = 3544.5 + 2710 = $6254.5
So,
$51000 - $6254.5 = $44,746.
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