Which of the Following Statements Is Correct

question 93

Multiple Choice

Which of the following statements is correct?

• A)Contributions to SEP plans by self-employed taxpayers are generally limited to the lesser of 15 percent of their net earned income (before the SEP deduction)or $45,000.
• B)The contribution limits for SEPs are the lesser of 25 percent of net self-employment income or $54,000 for a self-employed taxpayer.
• C)Employees may elect to make annual contributions to 401(k)plans up to the lesser of 15 percent of their net earned income (before the 401(k)deduction)or $45,000.
• D)The contribution limits for SEPs are a maximum of $18,000 ($24,000 for taxpayers 50 or older).

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Definitions:

Population Mean

The average value of a characteristic of the entire population.

Population Standard Deviation

The square root of the variance in a population, describing how data points in the entire population deviate from the population mean.

Sample Size

The number of observations or items included in a sample, which represents a portion of the larger population.

Binomial Populations

Populations that follow a binomial distribution, characterized by only two possible outcomes for each trial.