Fred Is a Self-Employed Accountant with Gross Earned Income of $140,000

question 59

Multiple Choice

Fred is a self-employed accountant with gross earned income of $140,000 per year (after the deduction for one-half of any self-employment tax) .He has a profit sharing plan (i.e., defined contribution plan) .What is the maximum amount Fred can contribute to his retirement plan?

• A)$28,000
• B)$35,000
• C)$40,000
• D)$140,000
• E)None of these

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Definitions:

B2B Purchases

Transactions where one business buys goods or services from another business.

Straight Rebuy

A purchasing situation in which a business buyer reorders an existing product or service from the list of acceptable suppliers without modifications.

B2B Marketing

The practice of marketing products and services directly between businesses, as opposed to marketing to end consumers.

Limited Decision Making

A consumer decision-making process used when purchasing products occasionally or needing little information about a product.