Tessa Is a Self-Employed CPA Whose 2014 Net Earnings from Her

question 58

Multiple Choice

Tessa is a self-employed CPA whose 2014 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 2014?

• A)$100,000
• B)$80,000
• C)$65,000
• D)$52,000

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Definitions:

Property Owners

Individuals or entities that legally possess ownership rights over various forms of property, such as land, buildings, or intellectual property.

Economic Interests

The financial goals or motivations of an individual, organization, or country.

Employees

Individuals who are hired to perform services or tasks for compensation under the direction and control of an employer.

Kingsley Davis

A notable sociologist and demographer who contributed to the study of population theory and urbanization.