Richard and linda are the only two employces of carolina company. in january, 2013, richard's gross pay was $5,500 and linda's gross pay was $5,200. each employee pays federal income tax equal to 25% of gross pay. in addition, linda pays $200 for insurance premiums and richard pays $225. each has $25 withheld for life insurance premiums. assume a fica tax rate of 8% on all earnings, a federal unemployment tax rate of 0.8%, and a state nemployment tax rate of 5.4%. the unemployment taxes are based on the first $7,000 of employee annual earnings

the entry to record the payroll 'r janary would include a

a. debt to salary payable to employees for $6,694.
b. credit to federal unemployment tax payable for $86.
c. credit to fica tax payable for $856.
d. credit to state unemployment tax payable for $578.

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.

(a) what do you think will happen if the price of non-gm crops continues to rise? why? (b) what will happen if the price of non-gm food drops? why?