Adam Fleeman, a skilled carpenter, started a home improvement business with Tom Collins, a master plumber. Adam and Tom

are concerned about the payroll taxes they will have to pay. Assume they form an $S$ corporation and each earns a salary of

$$80,000$ from the corporation; in addition, they expect their share of business profits to be $$60,000$ each. How much Social

Security tax and Medicare tax $($or self$-$employment tax$)$ will Adam, Tom, and their corporation have to pay on their salary and

profits?

$\frac{?}{\text{b}\text{a}\text{r}}($ Page $11-42)$