Jay is a general partner in HDP Company. For the current tax year, his share of HDP ordinary business income is $12,000, and he receives a guaranteed payment of $8,000. HDP took no section 179 expense deductions. Jay had no wage income during the tax year. Round to the nearest dollar.

This is a two-part question.

Question 1: What is the amount of Jay's self-employment tax on his personal tax return? Question 2: What is the amount of Jay's self-employment tax deduction on his personal tax

return?

a) $2,826; $1,413

b) $3,060; $1,530

c) $1,836; $ 923

d) $1,696; $ 848