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:

Marginal Product

The additional output produced when one additional unit of a resource is employed.

Minimizing Costs

Minimizing costs involves finding the most efficient way to operate that lowers expenses without sacrificing the quality or quantity of output.

Rental Rate

The price paid for the temporary use of a good, service, or property, typically expressed as a fee per time period.

Cost Minimization

The process of reducing expenses to the lowest possible level while still achieving the desired level of output or quality.