Emily Is a Self-Employed Attorney

question 37

Essay

Emily is a self-employed attorney.
a.Assuming that Emily earns $20,000 from her practice, calculate the total amount of her self-employment tax liability for 2018.
b.Assuming that Emily earns $145,000 from her practice, calculate the total amount of her self-employment tax liability for 2018.

---

Definitions:

System 1

Fast, automatic, intuitive thinking, as contrasted with slower, more analytical System 2 thinking, as identified in psychological research.

Nonconscious

Pertaining to mental processes and reactions occurring outside of and not available to conscious awareness.

Automatic

Operating by itself with minimal human intervention, typically through pre-established instructions or programs.

System 2

Described in cognitive psychological theory, it refers to the deliberate, effortful, and analytical mode of thinking, as opposed to fast, automatic thought processes.