Karla salons leased equipment from smith co. on july 1, 2018, in a finance lease. the present value of the lease payments discounted at 10% was $80,000. ten annual lease payments of $12,000 are due each year beginning july 1, 2018. smith co. had constructed the equipment recently for $66,000, and its retail fair value was $80,000. the total decrease in earnings (pretax) in karla's december 31, 2018, income statement would be (ignore taxes):
$12,000
$4,000
$3,400
$5,000

On january 8, the end of the first weekly pay period of the year, regis company's payroll register showed that its employees earned $22,760 of office salaries and $70,840 of sales salaries. withholdings from the employees' salaries include fica social security taxes at the rate of 6.20%, fica medicare taxes at the rate of 1.45%, $13,260 of federal income taxes, $1,450 of medical insurance deductions, and $860 of union dues. no employee earned more than $7,000 in this first pay period. required: 1.1 calculate below the amounts for each of these four taxes of regis company. regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid to each employee. the federal unemployment tax rate is 0.60