During 2017, Zach Has Net Income from His Sole Proprietorship

question 68

Multiple Choice

During 2017, Zach has net income from his sole proprietorship of $35,000. He also earned $86,600 as an employee in 2017. How much self-employment tax must Zach pay?

• A) $4,905
• B) $4,945
• C) $5,355
• D) $5,972

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Definitions:

Equilibrium Price

The market price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in a market.

Inequities

Unfair, avoidable differences in treatment or opportunities across individuals or groups.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given period.