Susan Is a Self-Employed Accountant with a Qualified Defined Contribution

question 106

Multiple Choice

Susan is a self-employed accountant with a qualified defined contribution plan (a Keogh plan) .She has the following income items for the year: What is the maximum amount Susan can deduct as a contribution to her retirement plan in 2013,assuming the self-employment tax rate is 15.3%?

• A)$9,235.
• B)$12,000.
• C)$46,000.
• D)$46,468.
• E)None of the above.

---

Definitions:

Additional Investment

Funds injected into a business by its owners or shareholders over and above the initial investment, typically to support operations, expansion, or growth.

Revenue Recognition

An accounting principle that outlines the specific conditions under which revenue is recognized and dictates how it should be reported in the accounts.

Production Process

The sequence of operations or procedures used to create finished goods from raw materials, typically involving planning, sourcing, manufacturing, and quality control.

Services Rendered

Work or duties provided by one party to another, often resulting in payment for the work done.