Carl is a self - employed real estate agent. For the current year, his self -employment net earnings (revenues minus expenses) are S80, 000. He isalso employed as an accountant with a gross salary of S90, 000 for theyear. Assume that the appropriate social security income ceiling for theyear is S150, 000 and that the self- employed FICA rates are 12.4% forsocial security and 2.9% for Medicare. What is Carl s self - employment taxliability for the year, rounded to the nearest dollar? SII,OOOSIO,823SII,304S9,583S12,240
Carl is a self - employed real estate agent. For the current year, his self -employment net earnings (revenues minus expenses) are S80, 000. He isalso employed as an accountant with a gross salary of S90, 000 for theyear. Assume that the appropriate social security income ceiling for theyear is S150, 000 and that the self- employed FICA rates are 12.4% forsocial security and 2.9% for Medicare. What is Carl s self - employment taxliability for the year, rounded to the nearest dollar? SII,OOOSIO,823SII,304S9,583S12,240
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Carl is a self - employed real estate agent. For the current year, his self -
employment net earnings (revenues minus expenses) are S80, 000. He is
also employed as an accountant with a gross salary of S90, 000 for the
year. Assume that the appropriate social security income ceiling for the
year is S150, 000 and that the self- employed FICA rates are 12.4% for
social security and 2.9% for Medicare. What is Carl s self - employment tax
liability for the year, rounded to the nearest dollar?
SII,OOO
SIO,823
SII,304
S9,583
S12,240
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