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James Owns a Sole Proprietorship

Question 27

Multiple Choice

James owns a sole proprietorship.James pays his son Albert, age 17, $8,000 and his daughter Chloe, age 19, $11,000 for their work in the business.Both wages are reasonable for the work they perform.How much FICA tax must the sole proprietorship pay on the wages?


A) 0
B) $612
C) $842
D) $1,454

Correct Answer:

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