During 2019, Elena generated $24,500 of net self-employment income. If Elena had no other earned income, how much self-employment tax will she owe on this profit? The social security limit in 2019 was $128,500. A) $3,259 B) $3,009 C) $3,462 D) $3,749 Charlie is a general partner with a 10% interest in Summertime Partners. His beginning of the year partnership basis was $4,000. During the year, Summertime borrowed $10,000. The partnership reported $6,000 ordinary loss. In addition, he earned $80,000 salary from ABC Corporation. How much of the partnership loss can he deduct this year? O A) $1,000 B) $6,000 C) $5,000 D) $0 Randy and Scott formed an S-Corporation on January 1st. Randy contributed a building with FMV of $100,000 and basis of $50,000, plus $150,000 cash. Scott contributed $250,000 cash. What is Randy's initial basis in the S Corporation? O A) $250,000 B) $200,000 C) $100,000 D) $150,000 On January 1, 2016, Laura Wang contributed $30,000 cash in exchange for 30 shares of stock in Suki Inc., an S corporation. On May 12, Laura loaned $8,500 to Suki in exchange for a 5-year interest-bearing note. Laura's pro rata share of Suki's 2016 ordinary business loss was $34,100, and she received no cash distributions during the year. Which of the following statements is accurate? A) Laura can deduct $34,100 of the loss in 2016. On January 1, 2017, the basis in her Suki stock is $4,400, and the basis in her Suki note is zero. B) Laura can deduct $30,000 of the loss in 2016. On January 1, 2017, the basis in her Suki stock is zero, and the basis in her Suki note is $8,500. C) Laura can deduct $34,100 of the loss in 2016. On January 1, 2017, the basis in her Suki stock is zero, and the basis in her Suki note is $4,400. D) None of the above is accurate. In contrast to a partnership, every member of an LLC has limited liability for the LLC's debts. True False Randolph Scott operates a business as a sole proprietorship. This year his net profit was $10,570. for tax purposes the income tax on this income will be paid by the: A) Both the individual and corporation B) Corporation C) None of the answers are correct OD) Individual What is the incentive for S Corporation Shareholders, who also work in the company, to receive an unreasonably low salary? OA) reduce overall taxes B) s Corporation shareholders can not be employees C) reduce income taxes D) reduce employment taxes