Tessa Is a Self-Employed CPA Whose 2014 Net Earnings from Her

question 58

Multiple Choice

Tessa is a self-employed CPA whose 2014 net earnings from her business (before the H.R.10 plan contribution but after the deduction for one-half of self-employment taxes) is $400,000.What is the maximum contribution that Tessa can make on her behalf to her H.R.10 (Keogh) plan in 2014?

• A)$100,000
• B)$80,000
• C)$65,000
• D)$52,000

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Definitions:

Reabsorption

The process by which the kidneys filter waste materials from the blood and reabsorb essential substances needed by the body.

Absorption

Refers to the process by which substances are taken up into the body, such as nutrients through the digestive system or drugs through the bloodstream.

Inhibitory Postsynaptic Potentials

Electrical changes in the membrane of a postsynaptic neuron that make the neuron less likely to generate an action potential.

Depolarize

In social contexts, to reduce or neutralize extreme views or tensions between opposing parties or viewpoints.