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Question(s) / Instruction(s):

Kline Manufacturing has the following labor costs:

Factory—Gross wages                   $195,000

Factory—Net wages                        160,000

Employer Payroll Taxes Payable          25,000

The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for

A.            $220,000

B.            $195,000

C.            $185,000

D.            $170,000

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