Kelly and Darryl are married. Kelly is a general partner in a successful fashion designing business. Her share of ordinary income was $119,655. Kelly also works part-time for a paper company. Her W-2 reported $34,862 in wages. Darryl is a successful executive and his W-2 reported $145,000 in wages. a. Calculate Kelly’s self-employment tax. b. Calculate the amount of Additional Medicare Tax that Kelly and Darryl owe based on their income. c. Calculate Kelly and Darryl’s AGI.
Kelly and Darryl are married. Kelly is a general partner in a successful fashion designing business. Her share of ordinary income was $119,655. Kelly also works part-time for a paper company. Her W-2 reported $34,862 in wages. Darryl is a successful executive and his W-2 reported $145,000 in wages. a. Calculate Kelly’s self-employment tax. b. Calculate the amount of Additional Medicare Tax that Kelly and Darryl owe based on their income. c. Calculate Kelly and Darryl’s AGI.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kelly and Darryl are married. Kelly is a general partner in a successful fashion designing business. Her share of ordinary income was $119,655. Kelly also works part-time for a paper company. Her W-2 reported $34,862 in wages. Darryl is a successful executive and his W-2 reported $145,000 in wages.
a. Calculate Kelly’s self-employment tax.
b. Calculate the amount of Additional Medicare Tax that Kelly and Darryl owe based on their income.
c. Calculate Kelly and Darryl’s AGI.
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