Question

Suppose Borman earned $148,000 last year. She calculates her self-employment tax by multiplying

$148,000 by 15.3%, which equals $22,644. Is Borman correct? Briefly explain.

Answer 1

Yes Borman is correct.

Explanation:

Borman moved the decimal point 2 spaces to the left which gave her 0.153

Then she multiplied that by $148,000 to get 15.3% of it which would give her $22,644 so therefore, she is correct.