1. Which payroll tax is imposed on both the employee and employer?
A. Federal income tax
B. State unemployment tax
C. FICA
D. Sales tax
2. Wiley is a farmer who owns land which borders on the right of way of the Burlington Railroad. On August 10,2016, due to admitted negligence of the railroad,hay oon the farm was set on fire and burned. Wiley has had a dispute with the railroad for several years concerning the ownership of a small parcel of land. The representative of the railroad has offered to assign all rights which the railroad may have in the land to Wiley in exchange for a release of his right to reimbursement for the loss sustained by the fire. Wiley appears inclined to accept the railroad's offer. The railroad's 2016 financial statements should include:
A. Recognition of a loss and creation of a liability for the value of the land
B. Recognition of a loss and creation of a contra-asset account
C. Creation of a liability only
D. Disclosure of the potential loss in a footnote
3. Trent, Inc. is a retail store operating in a state with a 5% retail sales tax. The state law provides that the retail sales tax collected during the month must be remitted to the state during the following month. If the amount collected is remitted to the state on or before the 20th day of the following month, the retailer may keep 3% of the total sales tax collected. On April 10,2016, Trent remitted $81,480 tax to the state tax division for March 2016 retail sales. What were Trent's March 2016 retail sales?