Which of the Following Statements Is True for Entity Owners

question 38

Multiple Choice

Which of the following statements is true for entity owners who pay the self-employment tax and the additional Medicare tax?

• A)Both the self-employment tax and the additional Medicare tax are deductible for AGI in full.
• B)Half of the self-employment tax and half of the additional Medicare tax are deductible for AGI.
• C)Half of the self-employment tax and none of the additional Medicare tax are deductible for AGI.
• D)None of the self-employment tax and none of the additional Medicare tax are deductible for AGI.

---

Definitions:

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, serving as a broad measure of overall domestic production.

National Income Account

A set of accounts that provides detailed information about a country’s economic activity, such as GDP, GNP, and national income.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, used to adjust for inflation.

GDP Deflator

A measure of inflation that divides the nominal GDP by the real GDP and then multiplies by 100, showing how much prices have changed over a specific period.