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England Company had gross wages of $50,000 during the week ended December 10. The amount of wages subject to federal and state unemployment taxes was $15,000. Total Amount withheld from employee wages for federal taxes was $98,000.
Tax Rates: Social Security = 7%
Medicare = 1.5%
State Unemployment = 4.2%
Federal Unemployment = 0.8%
a) Journalize the entry to record the payroll for the week of December 10
b) Journalize the entry to record the payroll tax expense incurred for the week of Dec 10.
Which investment would yield the greater after-tax return
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