John Has $55,000 Net Earnings from a Sole Proprietorship

question 97

Multiple Choice

John has $55,000 net earnings from a sole proprietorship.John is also employed by a major corporation and is paid $25,000.John's self-employment tax (rounded) for 2013 is

• A)$3,886.
• B)$4,208.
• C)$7,771.
• D)$8,415.

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Definitions:

Account Opportunity Level

A rating or assessment of the potential value or profitability that a particular customer or account could bring to a company.

Product

is any good, service, or idea that can be offered to a market to satisfy a want or need.

Swiss-Based Manufacturer

A company that engages in the production of goods and is headquartered in Switzerland.

Industrial Equipment

Machinery and tools designed for use in large-scale industrial production and operations.