Red's Waterworks is a semiweekly depositor.One month of the recent quarter's Schedule B had the following information: What is Red Waterworks' tax liability for Month 1?

Question

Red's Waterworks is a semiweekly depositor.One month of the recent quarter's Schedule B had the following information:  What is Red Waterworks' tax liability for Month 1?

Quizplus · Accepted Answer

To calculate Red Waterworks' tax liability for Month 1, we need to add up the total deposits for the month and then multiply by the appropriate tax rate. Looking at the Schedule B, we can see that the total deposits for Month 1 were $2,077,090. Multiplying this by the tax rate of 2.725% gives us a tax liability of $56,484.81. Therefore, the correct answer is C.

Red's Waterworks Is a Semiweekly Depositor