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Lara Started a Self-Employed Consulting Business in the Last Part

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Essay

Lara started a self-employed consulting business in the last part of the year and earned $60,000 of self- employment income.She had been employed as manager in a consulting firm prior to starting her own business and had earned $175,000.
(a)What is Lara's Additional Medicare Tax for 2016,if any?
(b)What is Lara's deduction for AGI for the Additional Medicare Tax?


Definitions:

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or increased by following it with a positive stimulus or the removal of a negative one.

Vicarious Learning

A learning process where individuals learn by observing the actions and outcomes of others, rather than through direct experience.

Insight Learning

The process of learning how to solve a problem or do something new by applying what is already known.

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.

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