The Total Payroll of Waters Company for the Month of October

The total payroll of Waters Company for the month of October, 2008 was $360,000, of which $90,000 represented amounts paid in excess of $90,000 to certain employees. $300,000 represented amounts paid to employees in excess of the $7,000 maximum subject to unemployment taxes. $90,000 of federal income taxes and $9,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee's wages to $90,000 and 1.45% in excess of $90,000. What amount should Waters record as payroll tax expense?

A) $118,620
B) $113,040
C) $23,040
D) $28,440