Chapter 20: Accounting
 1. Aviva Katz is verifying her paycheck to ensure that the deductions are correct. Determine her net pay for the week when her gross pay was \$375, Medicare is 1.45 percent of gross, Social Security is 6.2 percent of gross, and federal income tax is \$53.
 a. \$293.31 b. \$298.75 c. \$316.55 d. \$314.35
 2. Jake's Jewelry specializes in crafting sterling silver jewelry. Records of Jake's Jewelry's expenses for the first quarter show the following: payroll was \$12,750; raw materials were \$13,470; rent was \$4,000; utilities were \$1,600; office supplies were \$1,200; insurance was \$4,400; and advertising was \$960. What percent of total expenses did Jake's Jewelry spend on raw materials during the first quarter?
 a. 18% b. 27% c. 35% d. 42%
 3. A condominium complex has 30 2-bedroom and 20 3-bedroom condominiums. The 2-bedroom units are 1,250 square feet, and the 3-bedroom units are 1,550 square feet. The common fees to pay for the maintenance total \$119,875 a year. If the common fees are based on the square footage of a condominium, how much would the owner of a 2-bedroom condominium have to pay?
 a. \$1,250.00 b. \$2,187.50 c. \$2,712.50 d. \$1,250.00
 4. Bradley's Linen Service purchased a heavy-duty triple-load washer that cost \$2,475. The life of the washing machine is estimated to be 10 years. The total salvage value after 10 years of use is \$300. Using the straight-line method, find the annual depreciation of the washer.
 a. \$217.50 b. \$247.50 c. \$277.50 d. \$300.00
 5. The Book Nook purchased a computerized system to track inventory for \$3,450. The total resale value after 5 years is \$350. Using the straight-line method, the owner determined that the computer would depreciate \$620 per year. What is the book value at the end of the first year of depreciation?
 a. \$350.00 b. \$620.00 c. \$2,830.00 d. \$3,100.00
 6. Bradley's Linen Service purchased a box-truck for delivery and pick-up service to area restaurants for \$24,750. MACRS allows delivery vans to be depreciated fully in 6 years according to six fixed percents: 20 percent the first year, 32 percent the second year, 19.2 percent the third year, 11.52 percent the fourth and fifth years, and 5.76 percent the sixth year. What is the accumulated depreciation after the second year?
 a. \$4,950.00 b. \$7,920.00 c. \$9,900.00 d. \$12,870.00
 7. Ali Patel is verifying his paycheck to ensure that the deductions are correct. Determine his net pay for the week when his gross pay was \$295, Medicare is 1.45 percent of gross, Social Security is 6.2 percent of gross, and federal income tax is \$41.
 a. \$227.45 b. \$231.43 c. \$254.00 d. \$287.35
 8. Candy's Sweet Shoppe reviewed its record of expenses for the first quarter. Payroll was \$22,560; raw materials were \$6,870; rent was \$6,000; utilities were \$3,300; office supplies were \$1,200; insurance was \$5,400; and advertising was \$1,860. What percent of total expenses did Candy's spend on payroll during the first quarter?
 a. 14.6% b. 26.6% c. 30.4% d. 47.8%
 9. The Steakhouse purchased a freezer that cost \$2,850. The life of the freezer is estimated to be 5 years. The total salvage value after 5 years of use is \$200. Using the straight-line method, find the annual depreciation of the washer.
 a. \$200.00 b. \$530.00 c. \$570.00 d. \$2,320.00
 10. Mega Mulch purchased a wood chipper for \$3,900. The total resale value after 5 years is \$500. Using the straight-line method, the owner determined that the computer would depreciate \$680 per year. What is the book value at the end of the second year of depreciation?
 a. \$2,540.00 b. \$1,860.00 c. \$1,180.00 d. \$500.00