Chee Is a Key Employee of an H

question 89

Essay

Chee is a key employee of an H.R 10 (Keogh) defined contribution plan (a profit sharing plan) created by a partnership.Answer each of the following independent questions.
a.During 2019, $7,400 is contributed to the H.R.10 plan for Chee.What amount is deductible if his earned income is $45,000 (after the deduction for one-half of self employment tax)?
b.In 2019, $8,020 is contributed to the H.R.10 (Keogh) plan on Chee's behalf.If his earned income is $36,000 (after the deduction for one-half of self employment tax), what deduction, if any is allowed?
c.The partnership had a bad year in 2019, and only $820 was contributed to the H.R.10 plan on
Chee's behalf.He earned only $700 during 2019.Calculate Chee's allowable deduction.

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Definitions:

Future Favors

The concept of performing kind acts or services with the expectation of receiving help or support in return in the future.

Fudging

The act of manipulating or altering information, often to deceive or achieve a desired outcome.

Stakeholder Social Responsibility

An organizational approach that considers the impacts of its decisions and activities on all stakeholders, including employees, customers, communities, and the environment.

Managerial Policies

Guidelines, rules, and procedures set by management to govern actions and decision-making within an organization, aiming to achieve its objectives efficiently.