All of the Following Statements Regarding Self-Employment Income/tax Are True

question 92

Multiple Choice

All of the following statements regarding self-employment income/tax are true except:

• A)The self-employment tax is imposed on net earnings from self-employment when self-employment income is over $400.
• B)Self-employment tax is computed separately for married individuals filing joint returns.
• C)Independent contractors are subject to self-employment tax on the amount of net earnings from the self-employment activity.
• D)Employees who have a business in addition to their regular employment are not subject to the self-employment tax since FICA is withheld on their wages.

Apply the equity method of accounting for investments in associates and joint ventures.

Understand the impact of treasury stock transactions on earnings per share and owners' equity.

Comprehend the classification and accounting treatment of mandatorily redeemable preferred stock under current GAAP.

Recognize the role of state law in the governance of corporate distributions to shareholders.

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