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Baily owns and operates ben red truck shop

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Reference no: EM132031807

1. Baily owns and operates Ben’s Red Truck Shop (BRT), which is a sole proprietorship. She has self-employment income (i.e., net Schedule C) of $175,000. How much self-employment tax does she owe for 2018?

a. $13,388.

b. $15,922.

c. $20,608.

d. $24,727.

e. $26,775.

2. Marleen, who is 37 years old, is an employee of Zcrypt, Inc. (A C Corporation). Zcrypt sponsors a SEP IRA and would like to contribute the maximum amount to Marleen’s account for the plan year. If Marleen earns $32,000 per year in W-2 Wages (Salary), what is the maximum contribution Zcrypt can make on her behalf to the SEP IRA in 2018?

a. $8,000.

b. $18,500.

c. $26,500.

d. $32,500.

e. $55,000.

Reference no: EM132031807

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