Which of the Following Types of Income Is Subject to the Self-Employment

question 29

Multiple Choice

Which of the following types of income is subject to the self-employment tax?

• A)Interest income
• B)Gain on sale of real estate
• C)Income from a sole proprietor's law practice
• D)Dividends from stock
• E)None of the above

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Definitions:

Cash Available

Refers to funds that a company or individual can immediately use or access for payments, investments, or other financial needs.

Disbursements

Payments made by a business, often involving cash outflows for operating expenses, acquisitions, or investments.

Ending Cash Balance

The amount of cash a company has at the end of a given period, reflecting all cash inflows and outflows during that period.

Cash Disbursements

Outflows of cash for various purposes, including operating expenses, asset purchases, and other business activities.