Susan Is a Self-Employed Accountant with a Qualified Defined Contribution

question 69

Multiple Choice

Susan is a self-employed accountant with a qualified defined contribution plan (a Keogh plan) .She has the following income items for the year: Earned income from self-employment $50,000 Dividend income 8,000 Interest income 2,000 Net short-term capital gain 12,000 Adjusted gross income $72,000 ​ What is the maximum amount Susan can deduct as a contribution to her retirement plan in 2015,assuming the self-employment tax rate is 15.3%?

• A)$9,235.
• B)$12,000.
• C)$46,000.
• D)$46,468.
• E)None of the above.

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and efficiency.

Floor Inventory

The minimum amount of goods that a retailer keeps on the shop floor to ensure an adequate supply for normal sales volumes.

Accounts Receivable

Outstanding payments owed to a company by patrons for items or assistance already provided but not yet remunerated.

Debt To Suppliers

Liabilities owed to suppliers from transactions where goods or services were purchased on credit.