can someone help me with this qn?
It's a sim task qn in Becker.
Richard Norton is required to pay a self-employment tax based on the net profits of the farm business. For purposes of this task (Self-Employment Tax), assume that Richard had a net profit of $105,000 from the farm business for Year 3 and $10,000 of Section 1231 gain. Also assume that the maximum net income for social security tax is $117,000 for Year 3. Assume the following rates: 12.4% for social security and 2.9% for Medicare.
Net earnings from Employment?
Becker says answer is 96,968,
Explanation is only 92.35% of the line 1 ($105,000) is actually defined as net earning from from employment. 105,000 x 0,9235= 96,968.
How did Becker get 92.35%?
FAR May 2012 81 (lost credit, didn't sit for other sections.)
FAR 86 Aug 2015
AUD 85 Nov 2015
BEC 84 Dec 2015
REG 78 Mar 2016
Passed ALL sections in first attempt!!