18. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for$9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was$12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office.The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparableto that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross incomefrom the above is:a. $0.b. $600.c. $3,500.d. $4,100.e. None of a-d is correct

The objective of the question is to calculate Peggy's gross income from the transactions and…

Answered: 18. Peggy is an executive for the Tan…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The company pays its workers the difference between their regular wages and the amount received for jury duty. Employee 1 is a non- exempt employee who has been receiving $400 a week. He was not at work this pay period because he completed 5 days of jury duty for which he was paid $70 ($10 per day plus 20 cents per mile from her house to the courthouse, a 20-mile round trip). How much of Employee 1's earnings from the company are subject to FICA taxes since he didn't actually have any work time?
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.
You have decided to start a landscaping business in Rogers Arkansas (you reside in this city). You purchased a used truck for $9,000-and the necessary landscaping tools. During the month of May you charged and collected $6,000 for services rendered (all landscaping jobs were within the city limits of Rogers). Answer the following questions: 1. What amount of sales tax are you required to pay for the used truck you purchased? 2. How much sales tax should you have collected for services rendered?

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