Peter and Joan Are Married and Joan Has Self-Employment Income

question 32

Multiple Choice

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2014 income tax return? ​

• A)$360
• B)$2,160
• C)$0
• D)They will receive a $90 refund

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Definitions:

Accounting Figures

Quantitative values or financial numbers that are recorded from business transactions in the financial statements.

Actual Cash Flows

The real movement of money in and out of a business or investment, excluding any projections or estimates.

Cash Flow Position

An assessment of the amount of cash a company generates and uses during a period.

Times Interest Earned Ratio

A financial metric calculating how many times a company can cover its interest payments on outstanding debt with its earnings before interest and taxes.