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Victors gross farm income is $540, and his net farm profit is $460. Consequently, his net earnings figured under the farm optional method are $360
Victors gross farm income is $540, and his net farm profit is $460. Consequently, his net earnings figured under the farm optional method are $360 (2/3 of $540) and his actual net earnings are $425 (92.35% of $460). Victor owes what amount of Self-Employment (SE) tax if he uses the farm optional method to determine the tax?
A. $0 B. $360 C. $425 D. $540
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Managerial Accounting For Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
6th Edition
1264100590, 9781264100590
