Chee Is a Key Employee of an H

question 87

Short Answer

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 2014,$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 one­half of self-employment tax)?
b.In 2014,$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 2014,and only $820 was contributed to the H.R.10 plan on Chee's behalf.Chee earned only $700 during 2014.Calculate Chee's allowable deduction.

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Definitions:

Customer Satisfaction

An evaluation of the degree to which a company's products or services exceed or fulfill customer expectations.

Return On Sales

A financial ratio that measures the percentage of profit made from sales after covering operating expenses.

Expectancy Theory

A motivational theory suggesting that an individual's motivation depends on their expectation of the outcome and the value they place on that outcome.

Valence

In psychology, the extent to which a person values the expected outcome of an action; in chemistry, the combining power of an element.