Charles Land, a cash-basis farmer, has gross income of $2,190 and net income of $395 from his farming activity. Which of the following is the correct amount on which Mr. Land may compute his optional method of self-employment tax? (A) $395 (B) $1,460 (C) $4,520 (D) $4,894
Charles Land, a cash-basis farmer, has gross income of $2,190 and net income of $395 from his farming activity. Which of the following is the correct amount on which Mr. Land may compute his optional method of self-employment tax? (A) $395 (B) $1,460 (C) $4,520 (D) $4,894
Chapter12: Tax Administration And Tax Planning
Section: Chapter Questions
Problem 21MCQ
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Question
Charles Land, a cash-basis farmer, has gross income of $2,190 and net income of $395 from his farming activity. Which of the following is the correct amount on which Mr. Land may compute his optional method of self-employment tax?
(A) $395
(B) $1,460
(C) $4,520
(D) $4,894
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