Question

TRUE/FALSE

____1. A 90-day note dated March 23 has a maturity date of June 21.

____2. Federal unemployment (FUTA) tax is withheld from each employee's wages.

____3. No gain or loss is recorded when a plant asset is sold for an amount equal to its book value.

____4. Over the life of a depreciable asset, its recorded cost    decreases, the related accumulated depreciation increases, and its book value remains constant

____5. A W-2 form is the withholding allowance certificate for an employee with two dependents.

Answer 1

1) True

For maturity date calculation the first day or date of origin is omitted and maturity date is included.

2) False.

Federal unemployment tax is levied only on employer's. It is not deducted from employee's income.

3)True.

The cash received is compared to the book value of the asset.

4)False.

The depreciation decreases the book value of an asset and accumulated depreciation increases.

5)False.

A W-4 form is the withholding allowance certificate and W-2 form is a Wage and Tax statement form.