Atlas Earned $17,300 from His Sole Proprietorship in 2014

question 116

Short Answer

Atlas earned $17,300 from his sole proprietorship in 2014. This was his only source of income. How much in self-employment taxes will Atlas be able to deduct?

---

Definitions:

Initial Cost

The initial expenditure required to acquire an asset, including the purchase price and any additional costs necessary to get the asset ready for its intended use.

Cash Inflows

Funds that are received, whether from business operations, investment returns, or financing activities.

Certainty Equivalent Approach

This is a method used in financial analysis to determine the value of risky investments by finding the risk-free cash flow amount that an investor would accept instead of taking a risk.

Approach

A method or strategy used to tackle a problem or task.