In 2018, Mike Elfred Received a $165,000 Salary from His

question 93

Multiple Choice

In 2018, Mike Elfred received a $165,000 salary from his employer and generated $39,000 net earnings from self-employment from his small business. Which of the following statements is true?

• A) Mike does not owe any self-employment tax because his salary exceeded the 2018 base amount ($128,400) for federal employment tax.
• B) Mike owes both the Medicare and Social Security tax portions of self-employment tax on his $39,000 earnings from his small business.
• C) Mike owes Medicare tax but not Social Security tax on his $39,000 earnings from his small business.
• D) Mike owes Social Security tax but not Medicare tax on his $39,000 earnings from his small business.

Assess the implications of the wage gap between men and women.

Understand the journal entries related to various production activities, including labor, materials, and overhead allocation.

Comprehend the calculation and importance of equivalent units in a process costing setting.

Calculate the cost of goods manufactured, sold, and the ending inventory balance in a process costing system.

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Definitions:

Property Rights

The legal rights to possess, use, and dispose of assets, property rights are foundational to free market economies and influence resource allocation and investment.

Marginal Benefits

The additional satisfaction or utility gained from consuming or using one more unit of a good or service.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service, considering both the direct costs and any externalities.

Environmental Disaster

A catastrophic event that significantly harms the natural environment and leads to negative impacts on human health and well-being.