1. Maxine is separated from her husband and will file Married Filing Separately on her return. She

worked as an enrolled agent for an accounting firm last year for a salary of $225,000. Since

Maxine made over $200,000 in 2018, her employer withheld the additional 0.9% Medicare tax.

Which of the following is correct?

a) She is due a Medicare tax credit of $225.

b) She owes an additional Medicare tax of $900.

c) She owes an additional Medicare tax of $675.

d) She owes no additional tax and is not due any credit because her employer withheld

additional Medicare tax.

2. John's W-2 wages are $158,000 for 2018. What would be the correct amount of Social Security

tax?

a) $9,796.00

b) $7,960.80

c) $7,886.40

d) $9,822.60

3. Carter owns a small manufacturing company. In 2018, he purchased three depreciable assets

for his business. Asset #1 cost $200,000, Asset #2 cost $190,000, and Asset #3 cost $230,000.

What is the maximum Section 179 Expense Deduction Carter can take for tax year 2018?

a) $ 620,000

b) $ 510,000

c) $ 0

d) $1,000,000