spencer has earned $21,759 as a ride - share driver. he calculated a total of $1,678 in expenses. how much…

spencer has earned $21,759 as a ride - share driver. he calculated a total of $1,678 in expenses. how much will spencer owe for self - employment taxes? recall, the self - employment tax rate is 15.3%. a $1,521.73 b $3,069.33 c $3,326.07 d $1,678

spencer has earned $21,759 as a ride - share driver. he calculated a total of $1,678 in expenses. how much will spencer owe for self - employment taxes? recall, the self - employment tax rate is 15.3%. a $1,521.73 b $3,069.33 c $3,326.07 d $1,678

Answer

Explanation:

Step1: Calculate net income

Net income = Earnings - Expenses. So, $21759 - 1678=20081$.

Step2: Calculate self - employment tax

Self - employment tax = Net income×Tax rate. The tax rate is $15.3%$ or $0.153$ in decimal form. So, $20081\times0.153 = 3062.393\approx3069.33$.

Answer:

B. $3,069.33$