John Carpenter Works as a Manager of a Retail Store

question 27

Multiple Choice

John Carpenter works as a manager of a retail store.His employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings.What type of retirement plan does John have?

• A)Money-purchase pension plan
• B)Stock bonus plan
• C)Profit-sharing plan
• D)403(b)plan
• E)Defined benefit plan

---

Definitions:

Depreciation Expense

It refers to the allocation of the cost of a tangible asset over its useful life.

Camera Equipment

Hardware used in capturing images, including cameras, lenses, tripods, and lighting setups.

Loss On Sale

Loss on Sale occurs when the selling price of an asset is less than its carrying amount on the balance sheet, representing a financial loss for the company.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated to depreciation expense over the asset's useful life, reducing its book value.