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Question 1. 1. (TCO C) If intangible assets are acquired for stock,
how is the cost of the intangible determined? (Points : 20)
Question 2. 2. (TCO D) Total payroll of Watson Co. was $920,000,
of which $160,000 represented amounts paid in excess of $100,000 to
certain employees. The amount paid to employees in excess of $7,000
was $720,000. Income taxes withheld were $225,000. The state
unemployment tax is 1.2%, the federal unemployment tax is .8%,
and the FICA tax is 7.65% on an employee’s wages to $100,000 and
1.45% in excess of $100,000.
(a) Prepare the journal entry for the wages and salaries paid.
(b) Prepare the entry to record the employer payroll taxes. (Points :
30)
Question 3. 3. (TCO D) On January 1, 2010, Solis Co. issued its 10%
bonds in the face amount of $3,000,000, which mature on January 1,