During the current year,Eleanor earns $120,000 in wages as an employee of an accounting firm.She also earns $13,000 in gross income from an outside consulting service she operates.Deductible expenses paid in connection with the consulting service amount to $3,000.Eleanor also has a recognized long-term capital gain of $1,000 from the sale of a stock investment.She must pay a self-employment tax on:

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Eleanor is subject to the Medicare portion of the self­employment tax to the extent of the $10,000 ($13,000 - $3,000)of net earnings from self-employment.

During the Current Year,Eleanor Earns $120,000 in Wages as an Employee