Brenda Is a Self-Employed Accountant

question 120

Multiple Choice

Brenda is a self-employed accountant.She has net earnings (profit) from her practice of $74,000.Her self-employment taxes for the year are: (Round your answer to 2 decimal places. )

• A)$10,250.85.
• B)$10,450.21.
• C)$10,455.87.
• D)$11,322.00.

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Definitions:

Leasing Alternatives

Options available to businesses or individuals for obtaining the use of equipment or property through leasing agreements rather than purchase.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The contemporary valuation of foreseeable future earnings or sequences of cash payments, taking into account a specified interest rate.

Net Present Value Method

A method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.