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.

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Definitions:

Promotion Strategy

The plan and implementation of communication from a company to its audience, aiming to increase awareness, sales, or engagement with a product or service.

Medtronic

A global healthcare solutions company known for its medical devices, technology, and services, including those for diagnosing and treating chronic conditions.

Market Segmentation

The practice of dividing a broad target market into subsets of consumers who have common needs, interests, and priorities, and then designing and implementing strategies to target them.

Market Aggregation

The practice of treating an entire market as a single entity by offering a single product or service to all customers, ignoring segmentation.