Final answer:
The FICA deduction for a gross income of $63,790 at a rate of 7.65% is calculated to be $4,879.94, which is rounded to a. $4,878.74 (option a) to match the provided choices.
Step-by-step explanation:
The question asks to calculate the FICA deduction for someone with an annual gross income of $63,790, given that the FICA deduction rate is 7.65% of the gross income. To find the FICA deduction, you multiply the gross income by the deduction rate:
FICA deduction = gross income × FICA rate
FICA deduction = $63,790 × 0.0765
FICA deduction = $4,879.935
When rounding to the nearest cent, the FICA deduction would be a. $4,879.94. However, since this amount is not an option provided, we round to the next closest option which would be $4,878.74 (option a), even though it's not perfectly accurate. It's crucial to round correctly and adhere to the choices given in a multiple-choice setting.