Kathy Is 48 Years of Age and Self-Employed

question 81

Multiple Choice

Kathy is 48 years of age and self-employed.During the year she reported $100,000 of revenues and $40,000 of expenses relating to her self-employment activities.If Kathy has no other retirement accounts in her name,what is the maximum amount she can contribute to an individual 401(k) ?

• A)$11,152
• B)$16,652
• C)$28,652
• D)$51,000

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Definitions:

Incremental Fair Value

The additional value that is estimated to arise from a particular transaction or event over the current fair value of an asset or liability.

Share-based Payment

A way companies compensate employees or purchase goods and services by issuing shares of the company or options to buy shares, instead of cash.

Settlement Choice

The option provided to parties in a financial instrument or contract to settle obligations either through cash payments or by other means.

Present Obligation

A duty or responsibility that a company is currently required to fulfill, typically as a result of past events.