An employee earned $44,000 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $128,400 maximum per year and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for this employee is:

• $6,762.60.

• $3,381.30.

• $2,740.40.

• $640.90.

• $0, since the FICA tax is only deducted from an employee's pay.

On December 1, Victoria Company signed a 90-day, 8% note payable, with a face value of $9,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

• $180

• $60

• $720

• $120

• $0

Answer rating: 100% (QA)

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