During 2020, Elena Generated $24,500 of Earnings on Schedule C

question 53

Multiple Choice

During 2020, Elena generated $24,500 of earnings on Schedule C. If Elena had no other earned income, how much self-employment tax will she owe on her Schedule C net profit?

• A) $3,749
• B) $3,259
• C) $3,009
• D) $3,462

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Definitions:

Second Payment

The subsequent payment made after the first in a series of payments, often in the context of a financial transaction or loan.

Compounded Semi-Annually

Interest on an investment or loan that is calculated twice a year and then added to the principal, affecting the overall amount on which future interest is based.

Payment

A transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Compound Annual Return

The rate at which an investment grows annually over a specified period, taking into account the effect of compounding.