Personal Information Joe Castino is 45 years old and his wife Vanessa is 33 years old. Joe and Vanessa were married 12 years ago and have one son Lucca who is age 11. This is Joe's second marriage, and he has two daughters from his previous marriage: Valentina, who is 16 years of age, and Isabella, who is 14. Joe is partner in ABC Associates, an Accounting and Business Consulting firm that Joe started with two of his college friends. In addition, Joe also works as a part-time bartender at a saloon in his neighborhood. Asset Information The Castinos own their personal residence in tenancy by the entirety, and it is valued currently at $775,000. They purchased the home six years ago for $600,000. They remodeled their kitchen at a cost of $60,000. They have a mortgage balance of $265,000. The Castinos household furnishings are valued at $90,000. Joe and Vanessa have a joint checking account of $12,000 and a joint savings account that contains $150,000. Interest income on the savings account last year was $3,000. The Castinos also have $52,000 in money market mutual funds that paid non-qualifying dividends last year of $2,080. Joe owns shares in a growth stock mutual fund that he purchased three years ago for $50,000, is now worth $58,750, and paid qualified dividends last year of $750. Vanessa owns shares in a municipal bond fund purchased for $5,000, currently valued at $5,300, and yielding $200 per year tax-free. The Castinos jointly purchased 1,500 shares in Duke Energy, Inc., a public utility company. These shares were acquired at a cost of $16,500, are currently valued at $18,000, and pay annual qualifying dividends of $1,080. The Castinos are also joint owners of a parcel of undeveloped land where they plan to build a second home. The parcel of land cost them $180,000 and is currently valued at $200,000. They paid cash and therefore have no mortgage on the property. The Property taxes are $800. Joe still owns a condo from his former marriage that he rents for the year. The condo was purchased 15 years ago for $195,000 and is currently valued at $375,000. His adjusted basis is $150,000.The annual gross rental income from the property is $18,000. Joe has a mortgage balance of $55,000, and his payments total $6,000, of which $2,700 is principal and $3,300 is interest. His real estate taxes and condo fees are $6,600, and depreciation is $7,090. Joe has a one-third interest in the partnership ABC Associates. There are no employment contracts for the partners. Joe and his partners believe that the value of ABC Associates is approximately $3 million. The largest tangible asset of the firm is its building. The building and land were purchased in 1995 for $250,000, and $150,000 was allocated to the building and $100,000 to the land. An additional building has been added at a cost of $80,000, and the current value of the total real estate is estimated to be $900,000. The firm has a mortgage balance on the building and land of $115,000. The partnership has been depreciating the building for tax purposes under the MACRS (39-year straight line) cost recovery system and the current accumulated depreciation is $125,000. Income Tax Information Joe earns $150,000 in guaranteed payments from the partnership. In addition, the partnership reports net taxable income of $30,000, $10,000 of which is passed through to Joe as one of the three partners. As in the past, the partnership expects to pay each partner a $5,000 cash distribution at the end of the year. Joe also reports another $40,000 of W-2 income as an employee of the saloon. Vanessa earns $60,000 working as a legal secretary. The Castinos file a joint tax return. Joe and Vanessa incur home mortgage interest costs of $12,000 per year. Real estate taxes on their home are $7,500. They will pay $12,000 in state income taxes this year and $1,500 in personal property taxes. Their contributions to charities totaled $4,000. Which of the following amounts is Joe Castino's self-employment tax for 2023? A. $13,805 B. $13,926 C. $19,190 D. $18,805