Dirk Has $228,000 of Earned Income in 2010

question 38

Multiple Choice

Dirk has $228,000 of earned income in 2010.The amount he can contribute to a SEP is:

• A)$22,800.
• B)$46,000.
• C)$49,000.
• D)$61,250.
• E)None of the above.

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Definitions:

Balance Sheet Components

The major sections of a balance sheet, typically including assets, liabilities, and shareholders' equity.

Average Operating Assets

The average value of assets utilized in the regular operations of a business to generate earnings, calculated over a certain period.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, determined by the investor’s preferences, risks, and opportunity costs.

Net Operating Income

A company's total earnings from its operations, exclusive of taxation and interest.