Exercise 13-32 (LO. 5) Andrea is an employee of Fern Corporation and single. She also has her own business working as a life coach. For 2018, Andrea's wages from Fern were $210,000. Her self-employment income was $30,000 (line 4, Form SE, based on 92.35% of net earnings as a life coach). If required, round any computations to two decimal places. Round final answers to the nearest dollar. a. Compute the payroll, self-employment, and additional Medicare taxes for Andrea for 2018. b. Assume the same facts except that Andrea's 2018 self-employment activities resulted in a loss of $15,000. Compute the payroll, self- employment, and additional Medicare taxes for Andrea for 2018. c. Compute Andrea's NIIT for 2018 using wages of $210,000, self-employment income of $30,000 and NII of $20,000. There are no expenses allocable to any investment income.

Exercise 13-32 (LO. 5) Andrea is an employee of Fern Corporation and single. She also has her own business working as a life coach. For 2018, Andrea's wages from Fern were $210,000. Her self-employment income was $30,000 (line 4, Form SE, based on 92.35% of net earnings as a life coach). If required, round any computations to two decimal places. Round final answers to the nearest dollar. a. Compute the payroll, self-employment, and additional Medicare taxes for Andrea for 2018. b. Assume the same facts except that Andrea's 2018 self-employment activities resulted in a loss of $15,000. Compute the payroll, self- employment, and additional Medicare taxes for Andrea for 2018. c. Compute Andrea's NIIT for 2018 using wages of $210,000, self-employment income of $30,000 and NII of $20,000. There are no expenses allocable to any investment income.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Question

44.

Subject :- Accounting

Exercise 13-32 (LO. 5)
Andrea is an employee of Fern Corporation and single. She also has her own business working as a life coach. For 2018, Andrea's wages
from Fern were $210,000. Her self-employment income was $30,000 (line 4, Form SE, based on 92.35% of net earnings as a life coach).
If required, round any computations to two decimal places. Round final answers to the nearest dollar.
a. Compute the payroll, self-employment, and additional Medicare taxes for Andrea for 2018.
b. Assume the same facts except that Andrea's 2018 self-employment activities resulted in a loss of $15,000. Compute the payroll, self-
employment, and additional Medicare taxes for Andrea for 2018.
$
c. Compute Andrea's NIIT for 2018 using wages of $210,000, self-employment income of $30,000 and NII of $20,000. There are no
expenses allocable to any investment income.

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Step 1: total Payroll & Self-employment tax

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Step 2: . Computation of total taxes for 2018:

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Step 3: Computation of total taxes for 2018 (In case of loss)

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Step 4: c. Computation of NIIT for 2018:

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