During the year, eleanor earns $120,000 in wages as an employee of an accounting firm. she also earns $30,000 in gross income from an outside consulting service she operates. deductible expenses paid in connection with the consulting service amount to $6,000. 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:

a. $145,000
b. $144,000.
c. $31,000.
d. $30,000.
e. $24,000.

Self employment tax will be $24000

So option (e) will be correct option

Explanation:

We have given that earning from outside consulting service = $30000

Deductible amount paid in connection with consulting service = $6000

We have to find the self employment tax

Self employment tax is the difference of earning from outside source and deductible amount

So self employment tax = $30000 - $6000 = $24000

So option (e) will be correct option

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