Cowen Company began its operations in August of the current year. During August and September, the company paid wages of $2,450. For the last quarter of the year, the taxable wages paid amounted to $3,900. None of the employees were paid more than $7,000 this year.

a. Is Cowen Company liable for FUTA tax this year? Explain.

b. What is the net FUTA tax? . . . . .$_________