Palco Co, Which Has a Taxable Payroll of $900,000, Is Subject

Multiple Choice

Palco Co., which has a taxable payroll of $900,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company's state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Palco Co.?

A) $104,400
B) $73,800
C) $36,000
D) $25,200