Profits from a sole proprietorship are reported as taxable income and (B) are subject to a self-employment tax of approximately 15%.
Explanation:
Sole proprietors are asked to contribute to both the Social Security and Medicare systems,this type of contributions is known as the "self-employment taxes."
Self-employment taxes are considered equal to the payroll tax in case of an employees of a business. Regular employees are said to make their contributions to the above mentioned two programs in form of deductions fr, sole proprietors make such contributions when the pay their income tax
The rate of self-employment tax is 15.3%, which is further divided as 12.4% of Social Security and 2.9% of Medicare .
Thus we can say that Profits from a sole proprietorship are reported as taxable income and (B) are subject to a self-employment tax of approximately 15%.
Answer:
My answer is A) C) and D)
Explanation:
If I am wrong please tell me.
Answer:
If effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.
Explanation:
A price floor can be described as a price control in which the minimum price to be charged for goods and services is imposed by a government or a group.
For a price floor to be effective and binding, it has to be set above the market or equilibrium price. This is because a price floor will neither be effective nor nonbinding when it set below the equilibrium price.
Any price above the equilibrium or market price creates or leads to excess supply. Excess supply is a situation whereby quantiy of commodity supplied is more than the quantity demanded of the commodity.
Based on the above explanation, if effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.
