Examlex

Solved

Lara Started a Self-Employed Consulting Business in the Last Part

question 27

Essay

Lara started a self-employed consulting business in the last part of the year and earned $60,000 of self- employment earnings.She had been employed as manager in a consulting firm prior to starting her own business and had earned $175,000.
(a)What is Lara's Additional Medicare Tax for 2017,if any?
(b)What is Lara's deduction for AGI for the Additional Medicare Tax?


Definitions:

Non-strategic Investments

Investments not central to a company's business model or core mission, often made for diversification or income generation purposes rather than long-term strategic initiatives.

Investment in Associates

A financial interest held in another company that gives the investor significant influence, typically reflected by ownership of 20% to 50% of the voting stock.

Unrealized Gain

An increase in the value of an asset that has not been sold, hence the gain is not reflected in the financial statements as actual profit.

Equity Method

An accounting technique used by a company to record its investment in another company based on the profit or loss and changes in the investee's equity.

Related Questions