Jason Inc Maintains a Qualified Profit-Sharing Plan for Its Employees

question 102

Multiple Choice

Jason Inc. maintains a qualified profit-sharing plan for its employees. This year, Jason contributed $2,300 to Ms. Preston's profit-sharing account. Which of the following statements is true?

• A) Jason can deduct the contribution, and Ms. Preston must include the contribution in gross income.
• B) Jason can't deduct the contribution, but Ms. Preston must include the contribution in gross income.
• C) Jason can deduct the contribution, but Ms. Preston does not include the contribution in gross income.
• D) Jason can't deduct the contribution, and Ms. Preston does not include the contribution in gross income.

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Definitions:

Technological Innovation

The introduction of new technologies or methods that improve processes, products, or services.

Globalization

denotes the process by which businesses or other organizations develop international influence or start operating on an international scale.

Transnational Corporations

Corporations that operate across multiple countries beyond their original headquarters, influencing global trade and economic trends.

Overseas Operations

Business or military activities conducted outside of one's home country, often implying a cross-national or international scope.