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

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Essay

Sonya started a self-employed consulting business in the last part of the year and earned $40,000.She had been employed as manager in a consulting firm prior to starting her own business and had earned $135,000.
a.What is Sonya's self employment tax for 2019?
b.What is Sonya's deduction for AGI for the SE tax?


Definitions:

Subjective Estimates

Assessments or judgments made that rely on personal feelings, tastes, or opinions rather than external observable phenomena.

Probability Outcomes

The set of possible results in an experiment or situation, often quantified as likelihoods or percentages.

Decision Tree Analysis

A graphical representation of possible solutions to a decision based on different conditions, often used in business to strategize investments or processes.

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows associated with an investment, minus the initial investment cost.

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