Hui Pays Self-Employment Tax on Her Sole Proprietorship Income,supplemental Medicare

question 12

Multiple Choice

Hui pays self-employment tax on her sole proprietorship income,supplemental Medicare surtaxes on excess wages and self-employment income (the .09% tax) ,and supplemental Medicare taxes on investment income (the 3.8% tax) .Which of the following statements is correct regarding the deductibility of these taxes?

• A)All three of the taxes are deductible as itemized deductions.
• B)One-half of the self-employment tax is deductible for AGI,and the .09% and 3.8% taxes are itemized deductions.
• C)None of the taxes are allowed as a deduction.
• D)One-half of the self-employment tax is deductible for AGI,but the .09% and 3.8% taxes are not allowed as deductions.

Grasp the principles of cost functions in interconnected businesses and how they influence production decisions.

Comprehend the role of legislation and public policy in maximizing social welfare and individual utility.

Understand the effects of monopolistic control vs. competitive dynamics on industry output and profit.

Analyze the strategic interactions between firms in a competitive industry through mathematical modeling.

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Definitions:

UCC

Stands for Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Resale Profits

The earnings obtained from selling an asset or product for a price higher than the purchase cost.

Breach

The failure to fulfill the terms of a contract, agreement, or duty, which can lead to legal action for enforcement or damages.

Breach

The violation or non-fulfillment of a legal obligation, agreement, or duty.