Response to the following questions:
1. On November 7, 2011, Ortez Company borrows $150,000 cash by signing a 90-day, 8% note payable with a face value of $150,000.
(1) Compute the accrued interest payable on December 31, 2011,
(2) prepare the journal entry to record the accrued interest expense at December 31, 2011, and
(3) prepare the journal entry to record payment of the note at maturity.
2. What determines the amount deducted from an employee's wages for federal income taxes?