Chee Is a Key Employee of an H

question 43

Essay

Chee is a key employee of an H.R 10 (Keogh) defined contribution plan (a profit sharing plan) created by a partnership. Answer each of the following independent questions.
a.During 2017, $7,400 is contributed to the H.R. 10 plan for Chee. What amount is deductible if Chee's earned income is $45,000 (after the deduction for one-half of self employment tax)?
b.In 2017, $8,020 is contributed to the H.R. 10 (Keogh) plan on Chee's behalf. If Chee's earned income is $36,000 (after the deduction for one-half of self employment tax), what deduction, if any is allowed?
c.The partnership had a bad year in 2017, and only $820 was contributed to the H.R. 10 plan on Chee's behalf. Chee earned only $700 during 2017. Calculate Chee's allowable deduction.

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Definitions:

Extinct Rate

The rate at which species permanently disappear from Earth, often accelerated by human activities and environmental changes.

Species

A group of organisms that can interbreed and produce fertile offspring, sharing common genetic heritage.

Wolves

large carnivorous mammals belonging to the genus Canis, which also includes dogs and other species.

Livestock

Domesticated animals raised in an agricultural setting to produce commodities such as meat, milk, and wool.