Amanda Is an Employee of the Kiwi Corporation with a Yearly

question 27

Multiple Choice

Amanda is an employee of the Kiwi Corporation with a yearly salary of $80,000. The company maintains a noncontributory profit-sharing plan. During the year the company contributes $24,000 to the plan on her behalf in recognition of her outstanding work. The Kiwi Corporation is subject to an excess contribution penalty of

• A)$-0-
• B)$400
• C)$1,000
• D)$2,000
• E)$3,750

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Federal Tax

Taxes imposed by the federal government on income, sales, imports, estates, and gifts, among others, to fund national programs and services.

Demand for Marijuana

The desire for and quantity of marijuana that consumers are willing and able to purchase at various prices.

Market

Any institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of a particular good or service.