Which of the Following Best Describes the Manner in Which

question 76

Multiple Choice

Which of the following best describes the manner in which self-employed taxpayers may deduct self-employment taxes?

• A)Deduct employer portion from AGI.
• B)Deduct entire amount from AGI.
• C)Deduct employer portion for AGI.
• D)Deduct entire amount for AGI.
• E)No deduction.

---

Definitions:

Diversified Portfolio

An investment portfolio composed of a variety of assets to reduce exposure to risk associated with any single asset or industry.

Capital Gains

The profit earned from the sale of assets or investments, such as stocks or real estate, measured by the difference between the sale price and the original purchase price.

Interest Rate Risk

The potential for investment losses due to changes in interest rates.

Zero-Coupon Bonds

Bonds that do not pay periodic interest and are issued at a significant discount to their face value, maturing at par value.