Moses Is a 20% Partner in an Auto Parts Store

question 1

Multiple Choice

Moses is a 20% partner in an auto parts store where he works full-time. His share of the partnership income is $70,000, which is also his net-self-employment income.
I.Moses must pay self-employment tax at the rate of 15.3% on 92.35% of the partnership income.
II.Moses is allowed a deduction for AGI for 50% of the self-employment tax he pays during the year.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Agricultural Crop

Plants cultivated for food, fuel, fiber, and reclamation, including grains, fruits, and vegetables, significantly contributing to the agriculture industry.

Cilia

Microscopic, hair-like structures that extend from the surface of most eukaryotic cells, capable of moving and facilitating the movement of substances around the cell.

Flagella

Long, lash-like appendages that protrude from the cell body of certain cells and are used for locomotion.

Cell Movement

The ability of cells to locomote or change position, often critical for processes such as development, wound healing, and the immune response.