The following information pertains to Joe Diamond, a cash-method sole proprietor for the current year: - Gross receipts from business: $150,000 - Interest income from personal investments: $10,000 - Cost of goods sold: $80,000 - Other business operating expenses: $40,000 What amount of net earnings from self-employment would be multiplied by the applicable self-employment tax rate to compute Diamond's self-employment tax for the current year?

The following information pertains to Joe Diamond, a cash-method sole proprietor for the current year: - Gross receipts from business: $150,000 - Interest income from personal investments: $10,000 - Cost of goods sold: $80,000 - Other business operating expenses: $40,000 What amount of net earnings from self-employment would be multiplied by the applicable self-employment tax rate to compute Diamond's self-employment tax for the current year?

The following information pertains to Joe Diamond, a cash-method sole proprietor for the current year:
- Gross receipts from business: $150,000
- Interest income from personal investments: $10,000
- Cost of goods sold: $80,000
- Other business operating expenses: $40,000
What amount of net earnings from self-employment would be multiplied by the applicable self-employment tax rate to compute Diamond's self-employment tax for the current year?







a. $25,410
b. $27,705
c. $30,000
d. $40,000






Answer: B