Ava Has Net Earnings from Self-Employment of $125,000

question 10

Multiple Choice

Ava has net earnings from self-employment of $125,000.She also earned salary of $170,000 from a job held earlier in the year.How much Additional Medicare Tax will be owed on the self-employment income?

• A)$0
• B)$769
• C)$855
• D)$3,625

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Definitions:

Administration of Justice

The process by which a legal system operates and enforces laws, ensuring fairness and resolving disputes.

Exculpatory Clause

A provision in a contract that absolves one party of liability for damages or losses arising under the agreement.

Legally Enforceable

Referring to agreements or obligations that have the backing of and can be upheld by law.

Sustained Injury

refers to a physical or psychological harm that occurs and is maintained or prolonged over a period of time as a result of an accident, negligence, or intentional act.