Examlex

Solved

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

question 32

Essay

Sonya started a self-employed consulting business in the last part of the year and earned $40,000.She had been employed as manager in a consulting firm prior to starting her own business and had earned $125,000.
(a)What is Sonya's self employment tax for 2013?
(b)What is Sonya's deduction for AGI for the SE tax?


Definitions:

Incremental Cash Inflow

Additional cash earnings a company receives from undertaking certain actions, such as launching a new product or project.

Net 30 Credit Policy

A payment term that allows a customer 30 days to pay the full amount on an invoice without incurring interest or penalties.

Monthly Interest Rate

The interest rate applied to a loan or debt for each month, often used to calculate the interest expense on outstanding debt for the month.

Restocking Costs

The expenses associated with replenishing inventory once it has been sold to customers.

Related Questions