Federal Taxation

Rhonda is an accrual basis self-employed CPA. She bills clients a total of $97,000 during the current year. She receives $30,000 in cash from billings in prior years and $65,000 from current-year billings. Rhonda accrues the following expenses related t her business: Office Rent $ 15,000 Employees gross salaries 28,000 Withholdings from employees taxes Federal income taxes 2,750 State income taxes 1,200 FICA taxes 3,500 Employer's matching FICA taxes 3,500 Cost of meals with clients 1,500 Supplies 2,600 AICPA association dues 300 CPA licensing fee 425 Salary paid to Rhonda 65,000 Rhonda uses her automobile extensively in her business. She keeps a log to record business miles and related costs. Her records show that she drove 11,200 business miles and 4,800 personal miles during the current year. As in past years, she kept track of her business miles but failed to keep an accurate record of her actual costs. Accordingly, her records indicate that she has never depreciated any of the $26,000 cost of the automobile she purchased 2 years ago. Rhonda also paid $2,500 in interest on her car loan during the year. What is the calculation for Rhonda's self-employment tax reported on Schedule S/E? 0% because she had a loss 15.3% of 92.35% of net business income O 9 w