Jorge Is a 100 Percent Owner of JJ LLC (Taxed

question 28

Multiple Choice

Jorge is a 100 percent owner of JJ LLC (taxed as an S Corporation) .He works full-time for JJ and his marginal ordinary tax rate is 37 percent.Which of the following statements is true regarding Jorge's tax treatment of business income allocated to him from JJ?

• A)Business income allocations are subject to self-employment tax.
• B)Business income allocations are not subject to the net investment income tax.
• C)Business income allocations are subject to the additional Medicare tax.
• D)Business income allocations are taxed at a maximum 23.8 percent tax rate.

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Definitions:

Circulating Nurse

Assistant to the scrub nurse and surgeon whose role is to provide necessary supplies; dispose of soiled instruments and supplies; and keep an accurate count of instruments, needles, and sponges used.

Intraoperatively

A term referring to the period during surgery, concerning events or actions occurring while a surgical procedure is being performed.

OR Suite

A suite of operation rooms in a hospital or medical facility where surgical procedures are performed.

Vascular Repair

The surgical procedure aimed at restoring the function and integrity of blood vessels.