Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Marge, who is married, operates Shapes: A Gym for Women. Assume Marge runs Shapes as a sole proprietorship. The business generated gross income for tax
- Marge, who is married, operates Shapes: A Gym for Women.
- Assume Marge runs Shapes as a sole proprietorship. The business generated gross income for tax purposes of $564,000 and had valid, deductible business expenses of $370,000 in 2020. What is Marges 2020 self-employment tax liability?
- Same facts as Part A. What is Marges 2020 federal income tax deduction for self-employment tax?
- Assume that, instead of running Shapes as a sole proprietorship, Marge is an employee of the Shapes Company. (Marge does not own any part of the Shapes Company; she is simply an employee of the company.) $200,000 is her salary for 2020. How much should the Shapes Company have withheld from her pay, in total, for FICA taxes?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Management Foundations A Pacific Rim Focus
Authors: Kathryn Bartol, Margaret Tein, Graham Matthews, Bishnu Sharma, Brenda Scott Ladd
3rd Edition
978-0070284944, 0070284946
