Answer:
268 dollars
Explanation:
Profit made by this sole proprietor = 10000
Salary income = 140000
The question needs us to calculate the self employment tax that he owes
This tax is about 2.9% of 92.35% of his income. His salary is already more than social security maximum of 128,700.
The, self-employment tax would be = 10,000 x 92.35% x 2.9%
= 267.815
When approximated
= $268
