Anita, a single taxpayer, reports the following items for 2017: Salary .............................$20,000 Income for serving on the

Question:

Anita, a single taxpayer, reports the following items for 2017:

Salary ………………………………………………………………………….............................…$20,000

Income for serving on the Board of Directors for XYZ Corporation ………....11,000

Consulting gross income ………………………………………………………........................9,000

Expenses related to consulting practice ……………………………………….........… (15,000)

a. What is the amount of Anita’s self-employment tax?

b. How would your answer to Part a change if Anita’s salary were $140,000?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...