Lana Powell has cumulative earnings of $110,000 at the end of September. In the first week in October she earns $2,000. The amount deducted for Social Security and Medicare from her check is (assume Social Security rate of 6.2% on $110,100 and Medicare of 1.45%):

$29.00

$35.20

$53.20

$92.00

None of these

$153

Step-by-step explanation:

The computation of the amount deducted for social security and medicare is shown below:

For social security, it is

= $2,000 × 6.2%

= $124

And, for the medicare, it is

= $2,000 × 1.45%

= $29

So, the total amount deducted for Social Security and Medicare is

= $124 + $29

= $153

Since the deducted amount could be computed by considering the check amount i.e $2,000 and the same is to be considered