Hong Earns $127,300 in Her Job as a Physician's Assistant

question 35

Multiple Choice

Hong earns $127,300 in her job as a physician's assistant.She also has her own business selling cosmetics.This business generated $10,000 of earnings.What is Hong's self-employment tax for 2016?

• A)$268
• B)$290
• C)$1,412
• D)$1,530

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Definitions:

Stockholders' Equity

The ownership interest of shareholders in the assets of a corporation after all debts have been paid.

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or reinvested in the business instead of being distributed to shareholders as dividends.

Weighted-average Shares

A calculation used in accounting and finance to determine the average number of shares outstanding in a company, adjusted for stock splits and other changes.

Price-earnings Ratio

A financial metric comparing a company's market price per share to its earnings per share, indicating the value given by the market for each dollar of earnings.