The Ceiling Amounts and Percentages for 2012 for the Two

question 7

Multiple Choice

The ceiling amounts and percentages for 2012 for the two portions of the self-employment tax are: Social Security portion Medicare portion

• A)$110,100; 13.3% Unlimited; 2.9%
• B)$110,100; 12.4% Unlimited; 2.9%
• C)$110,100; 10.4% Unlimited; 2.9%
• D)$110,100; 10.4% Unlimited; 13.3%
• E)None of the above.

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Definitions:

Internal Rate

The discount rate at which the net present value of an investment's cash flows equals zero, used to assess an investment's profitability.

Cash Inflow

Money that enters a business, often from operations, investments, or financing activities, contributing to the company's cash balance.

Outlay

An amount of money spent on something, often as an investment or expenditure.

Cost of Capital

The rate of return that a company must pay on its investments to satisfy its investors or creditors.