Frank Is a Self-Employed CPA Whose 2017 Net Earnings from His

question 65

Multiple Choice

Frank is a self-employed CPA whose 2017 net earnings from his trade or business (before the H.R.10 plan contribution but after the deduction for one-half of self-employment taxes) is $240,000.What is the maximum contribution that Frank can make on his behalf to his H.R.10 (Keogh) plan in 2017?

• A)$67,500
• B)$48,000
• C)$54,000
• D)$60,000

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Definitions:

Lottery Winnings

Income or assets gained from winning a lottery, often subject to taxation.

Gift Revoked

The act of taking back or withdrawing a gift once given, under certain legal circumstances.

Rightful Ownership

Lawful possession or title of property or assets by an individual or entity.

Tying Arrangement

An illegal agreement in which the sale of one product is tied to the sale of another.