Ava Has Net Earnings from Self-Employment of $125,000

question 4

Multiple Choice

Ava has net earnings from self-employment of $125,000.She also earned salary of $170,000 from a job held earlier in the year.How much Additional Medicare Tax will be owed on the self-employment income?

• A)$0
• B)$855
• C)$1,125
• D)$3,625

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Definitions:

Bylaws

Written rules and regulations that govern the internal affairs and operations of an organization or corporation.

Transfer of Shares

The process by which ownership of a company's stock is moved from one party to another.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Treasury Shares

Shares that were issued and subsequently reacquired by the issuing corporation, not considered when calculating earnings per share or dividends.