Quirk Corp What Amount Should Quirk Accrue as Its Share of Payroll

Multiple Choice

Quirk Corp.'s payroll for the pay period ended October 31, 2007 is summarized as follows: $\begin{array}{lrrrr}&& \text { Federal }&& \text {Amount of Wages Subject }\\ \text {Department }& \text { Total }& \text { Income Tax }&& \text { to Payroll Taxes}\\ \text {Payroll }& \text {Wages }& \text { Withheld}& \text {F.I.C.A. }& \text {Unemployment }\\\hline\text { Factory } & \$ 75,000 & \$ 9,000 & \$ 70,000 & \$ 22,000 \\\text { Sales } & 22,000 & 3,000 & 16,000 & 2,000 \\\text { Office } & 18,000 & 2,000 & 8,000 & -\\\hline &\$115,000&\$14,000&\$84,000&\$24,000\end{array}$

$\begin{array}{l}\text { Assume the following payroll tax rates: }\\\begin{array}{ll}\text { F.I.C.A. for employer and employee } & 7 \% \text { each } \\\text { Unemployment } & 3 \%\end{array}\end{array}$ What amount should Quirk accrue as its share of payroll taxes in its October 31, 2007 balance sheet?

A) $21,300.
B) $14,720.
C) $13,880.
D) $7,300.