Tessa Is a Self-Employed CPA Whose 2019 Net Earnings from Her

question 48

Multiple Choice

Tessa is a self-employed CPA whose 2019 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 2019?

• A)$100,000
• B)$80,000
• C)$70,000
• D)$56,000

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Definitions:

Preponderance of the Evidence

A standard of proof in civil cases, where the party with the more convincing evidence wins, requiring over 50% of the evidence to be in favor.

Negligence Action

A legal claim made against someone who is alleged to have failed to act with the care that a reasonably prudent person would have in a similar situation, resulting in harm.

Res Ipsa Loquitur

A legal doctrine which allows plaintiffs to prove negligence on the basis of the very nature of an accident or injury occurring, suggesting the defendant's responsibility even without direct evidence of negligence.

Overpressurized

A state where pressure in a system exceeds its designed limits, potentially leading to failure or hazard.