Question: 1. What is a liability? Identify its crucial characteristics.
2. Why does a creditor prefer a note payable to a past-due account payable?
3. A company pays its one employee $3,000 per month. This company's FUTA rate is 0.8% on the first $7,000 earned; its SUTA rate is 4.0% on the first $7,000; its Social Security tax rate is 6.2% of the first $106,800; and its Medicare tax rate is 1.45% of all amounts earned. The entry to record this company's March payroll includes what amount for total payroll taxes expense?