Tessa Is a Self-Employed CPA Whose 2016 Net Earnings from Her

question 16

Multiple Choice

Tessa is a self-employed CPA whose 2016 net earnings from her business (before the H.R.10 plan contribution but after the deduction for one-half of self-employment taxes) is $400,000.What is the maximum contribution that Tessa can make on her behalf to her H.R.10 (Keogh) plan in 2016?

• A)$100,000
• B)$80,000
• C)$66,250
• D)$53,000

---

Definitions:

Grapevine

Transfers information through networks of friendships and acquaintances.

Ethnocentrism

The tendency to believe one’s culture and its values are superior to those of others.

Alternative Points

Perspectives or options that differ from the main or currently considered paths, often providing creative or novel solutions to problems.

Semantic Barriers

Involve a poor choice or use of words and mixed messages.