Xavier Is a Self-Employed Plumber

question 62

Multiple Choice

Xavier is a self-employed plumber.His earnings from self-employment,before the Keogh deduction but after deducting half of the self-employment tax,are $80,000.What is his deductible Keogh contribution for 2017?

• A)$16,000.
• B)$20,000.
• C)$54,000.
• D)$64,000.

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Definitions:

Exterorganizational

Exterorganizational pertains to interactions, relationships, or dynamics that occur outside of or between organizations, rather than within a single organization.

Extraorganizational

Pertaining to activities or influences that are outside the scope or boundaries of a single organization.

ERP

Stands for Enterprise Resource Planning, a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, and manufacturing.

MRP

Material Requirements Planning, a computer-based inventory management system designed to assist production planning and inventory control.