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

question 10

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)$769
• C)$855
• D)$3,625

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Definitions:

Smelting Plant

is an industrial facility where metal ores are heated and melted to separate the metal from impurities, producing pure metal for various applications.

Tort

A violation of another person’s rights or a civil wrongdoing that does not arise out of a contract or statute; primary types are intentional, negligent, and strict-liability torts.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or injury due to the unlawful act or omission of another.

Appeal

An appeal is a formal request for a higher court to review and change the decision of a lower court.