_____ 27The Additional 0

question 29

True/False

_____ 27.The additional 0.9 percent Medicare surtax applies to earned income of individuals with wages in excess of $200,000 but does not apply to self-employed individuals.

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Definitions:

Bonds Issued

Debt securities sold by corporations or governments to raise funds, to be repaid at a future date.

Capital Lease

A contractual arrangement that transfers substantially all the benefits and risks of ownership to the lessee so that the lease is in effect a purchase of the property.

Plant Assets

Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment.

Loss On Redemption

A financial loss experienced when redeeming bonds or securities before their maturity date for a price higher than their face value.