Tessa Is a Self-Employed CPA Whose 2015 Net Earnings from Her

question 33

Multiple Choice

Tessa is a self-employed CPA whose 2015 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 2015?

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

Grasp the effect of entry barriers on market competition and profitability.

Understand the relationship between market structure and elasticity of demand and supply curves.

Comprehend the factors influencing the pricing decisions in monopolies.

Recognize the impact of market substitutes and complements on monopolistic markets.

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Definitions:

Efficiency

Relates to the degree of effectiveness with which resources (time, money, effort) are utilized to achieve a goal or perform a task.

Speed of Thought

The rapidness with which one can process information, make decisions, and formulate ideas.

Continuously

Occurring without interruption or cessation.

Discontinuously

In a manner that is not continuous or consistent; occurring in separate parts or intervals.