During 2019, Kyle Has Net Income of $200,000 from Consulting

question 25

Multiple Choice

During 2019, Kyle has net income of $200,000 from consulting as an independent contractor.How much must Kyle pay for self-employment tax (rounded to the nearest dollar) ?

• A)$30,600
• B)$21,836
• C)$21,722
• D)$15,300
• \(\begin{array}{|l|r|r|}
• \hline \text { Social Security and Medicare Taxes } & \mathbf{2 0 1 9} & \mathbf{2 0 1 8} \\
• \hline \text { FICA Social Security tax rate } & 6.2 \% & 6.2 \% \\
• \hline \text { SECA Social Security tax rate } & 12.4 \% & 12.4 \% \\
• \hline \text { FICA Medicare tax rate } & 1.45 \% & 1.45 \% \\
• \hline \text { SECA Medicare tax rate } & 2.9 \% & 2.9 \% \\
• \hline \text { Social Security income limit } & \$ 132,900 & \$ 128,400 \\
• \hline \text { Medicare tax income limit } & \text { None } & \text { None } \\
• \hline \text { Total SECA rate below SS income limit } & 15.3 \% & 15.3 \% \\
• \hline \begin{array}{l}
• \text { Deductible SECA rate below SS income } \\
• \text { limit }
• \end{array} & 7.65 \% & 7.65 \% \\
• \hline
• \end{array}\)

Identify various types of entities and their inclusion within a controlled group under consolidation accounting.

Comprehend the concepts of 'shared control' and 'joint control' as per Accounting Standard AASB 127.

Recognize the requirements for the preparation of separate financial statements under specific accounting standards.

Understand the considerations beyond percentage ownership in determining financial reporting obligations.

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Definitions:

Formal Rationality

Refers to a mode of thought and decision-making based on clear rules, regulations, and procedures, often associated with bureaucratic institutions.

Metaphorical Encasement

The concept of encapsulating complex ideas or phenomena within a metaphor to facilitate understanding or analysis.

Iron Cage

A concept introduced by Max Weber to describe the increased rationalization inherent in social life, particularly in Western capitalist societies.

Macroscopic Culture

A term referring to the wide-scale cultural patterns and institutions that shape societies as wholes, as opposed to localized, individual cultural practices.