Juan recently started operating a flower shop as a proprietorship. In its first year of operations, the shop had a taxable income of $60,000. Assuming that Juan had no other employment-related earnings,
A.The flower shop must withhold FICA taxes from Juan's earnings.
B.Juan must pay self-employment tax on the earnings of the business.
C.Juan will be exempt from self-employment taxes for the first three years of operations.
D.Juan will be exempt from the Medicare tax because the business earnings are below the threshold amount.