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

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Definitions:

Personal Computers

Electronic devices designed for individual use, capable of executing a set of commands to perform various tasks.

Financial Planning

The process of determining short and long-term financial goals and creating strategies to meet those goals.

ACP

In financial contexts, ACP often stands for "Average Collection Period," representing the average number of days it takes for a company to receive payments from its customers.

Receivables Balance

The cumulative sum of money that customers owe to a business for products supplied or services rendered but not yet compensated for.