Posie Is an Employee of Geiger Technology and Earns $90,000

question 35

Multiple Choice

Posie is an employee of Geiger Technology and earns $90,000 in 2018. The maximum amount Geiger can contribute to a profit sharing plan on behalf of Posie is

• A)$6,000
• B)$13,500
• C)$22,500
• D)$25,000
• E)$55,000

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Definitions:

Separate Return

A tax return filed by an individual or entity separately from other entities or individuals, particularly in the context of married couples filing separately.

Mutual Ownership

A type of ownership where two or more parties jointly own an asset or a company, sharing in its risks and profits.

Ownership Pattern

The distribution of ownership in a company, detailing the different types of shareholders and their respective shares.

Amortization Of Goodwill

The process of gradually writing off the initial cost of goodwill over a period, reflecting the diminution of the asset's value over time.