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For each of the following individuals, calculate the applicable self- employment tax. Assume that each individual files tax returns under single status. Remember, the IRS instructs employers to collect additional Medicare tax on all employee earnings more than $200,000 in a single year without regard to filing status. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 2. Alexander Ryan earns net self- employment income of $120,100. He works a second job from which he receives FICA taxable earnings of $58,400. Self-Employment tax = $ 3. Morgan Cruise earns net self- employment income of $226,100. She works a second job from which she receives FICA taxable earnings of $118,100.00. Self-Employment tax= $

For each of the following individuals, calculate the applicable self- employment tax. Assume that each individual files tax returns under single status. Remember, the IRS instructs employers to collect additional Medicare tax on all employee earnings more than $200,000 in a single year without regard to filing status. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 2. Alexander Ryan earns net self- employment income of $120,100. He works a second job from which he receives FICA taxable earnings of $58,400. Self-Employment tax = $ 3. Morgan Cruise earns net self- employment income of $226,100. She works a second job from which she receives FICA taxable earnings of $118,100.00. Self-Employment tax= $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For each of the following individuals, calculate the applicable self- employment tax. Assume that each individual files tax returns under single status. Remember, the IRS instructs employers to collect additional Medicare tax on all employee earnings more than $200,000 in a single year without regard to filing status. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 2. Alexander Ryan earns net self- employment income of $120,100. He works a second job from which he receives FICA taxable earnings of $58,400. Self-Employment tax = $ 3. Morgan Cruise earns net self- employment income of $226,100. She works a second job from which she receives FICA taxable earnings of $118,100.00. Self-Employment tax= $
Transcribed Image Text:For each of the following individuals, calculate the applicable self- employment tax. Assume that each individual files tax returns under single status. Remember, the IRS instructs employers to collect additional Medicare tax on all employee earnings more than $200,000 in a single year without regard to filing status. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 2. Alexander Ryan earns net self- employment income of $120,100. He works a second job from which he receives FICA taxable earnings of $58,400. Self-Employment tax = $ 3. Morgan Cruise earns net self- employment income of $226,100. She works a second job from which she receives FICA taxable earnings of $118,100.00. Self-Employment tax= $
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