Cailey and Dimitri Are Married and File a Joint Tax

question 112

Multiple Choice

Cailey and Dimitri are married and file a joint tax return. Cailey has $170,000 in salary and Dimitri has $210,000 in self-employment income in 2018. How much must they pay on their individual tax return for their Medicare surtax?

• A) $0
• B) $1,025
• C) $1,170
• D) $3,420

---

Definitions:

Equal Dignity Rule

A legal principle requiring that agents conducting transactions on behalf of principals must have the authority to do so, which is granted with the same formality as the underlying transaction.

Substantial Performance Doctrine

A legal principle recognizing that a contract has been essentially fulfilled and deserves payment, despite minor deviations from the exact terms.

Implied Agency

A legal relationship formed by the actions of the parties involved rather than by written agreement or document.

Equal Dignity Rule

A legal doctrine requiring that contracts authorizing someone to conduct a transaction must be executed with the same formality as required for the transaction itself.