Phyllis Is an Electrician Employed by Bogie Company

question 121

Multiple Choice

Phyllis is an electrician employed by Bogie Company. Phil is a self-employed electrician. During the current year, Phyllis's salary is $75,000 and Phil's net self-employment income is $75,000. Which of the following statements about the Social Security and self-employment taxes paid is/are correct?
I.Phil's self-employment tax is greater than the Social Security tax paid on Phyllis's income.
II.Phil pays more self-employment tax than Phyllis pays in Social Security tax.
III.Phil and Phyllis pay the same amount of tax.
IV.Phil's self-employment tax is equal to the Social Security tax paid on Phyllis's income.
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• A)Only statement I is correct
• B)Only statement I is correct.
• C)Only statement IV is correct.
• D)Statements I and III are correct.
• E)Statements II and IV are correct.

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Definitions:

Deductive Reasoning

An intellectual method where a deduction is made from the agreement of several assumptions, which are usually believed to be accurate.

Artificial Intelligence

The simulation of human intelligence processes by machines, especially computer systems, involving activities like learning, reasoning, and self-correction.

Inductive Reasoning

A reasoning method where several assertions, considered true or often true, are integrated to reach a particular conclusion.

Deductive Reasoning

A logical process in which a conclusion follows from specific premises, assuming those premises are true.