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A leasehold refers to the rights the lessor grants to the lessee under the terms of the lease.

A company purchased a tract of land for its natural resources at a cost of $1,500,000. It expects to mine 2,000,000 tons of ore from this land. The salvage value of the land is expected to be $250,000. The depletion expense per ton of ore is:

All of the following statements regarding FICA taxes are true except:

A company had average total assets of $887,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company’s total asset turnover equals:

A company discarded a computer system originally purchased for $18,000. The accumulated depreciation was $17,200. The company should recognize a(an):

All of the following statements regarding FICA taxes are true except:

An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 of employee earnings per calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount of total unemployment taxes the employee must pay?

The carrying value of a long-term note payable is computed as:

All of the following are true of known liabilities except:

When the contract rate of a bond is greater than the market rate on the date of issuance, the bond sells at a discount.