$120
Explanation:
FUTA taxes = 6% - 5.4% (maximum credit for state unemployment taxes) = 0.6%
FUTA taxes are collected on the first $7,000 of annual salary paid to the employees
total FUTA tax liability:
Eddie $7,000 x 0.6% = $42Melanie $6,000 x 0.6% = $36Shelly $7,000 x 0.6% = $42total = $120