ff1 Going Higher Construction sponsors a 401(k) profit sharing plan. In thecurrent year, Going Higher Construction contributed 25% of eachemployees' compensation to the profit sharing plan. The ADP of the401(k) plan for the NHC was 3.5%. If Bob, age 57, earns $100,000 and is a6% owner, what is the maximum amount that he may defer into the401(k) plan for 2016?(a) $5,500.(b) $6,000.(c) $11,500.(d) $24,000.

Answer:- Profit sharing:- A plan known as "profit sharing" is one that is designed by businesses…

Answered: Going Higher Construction sponsors a…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 38P

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Colin owns and operates Colin's Creative Coaching (3C), a sole proprietorship. 3C sponsors a 401(k)/ profit-sharing plan. Colin had net income of $200,000 and paid self-employment taxes of $20,000 (assumed) during the year. Assuming Colin is over the age of 50, what is the maximum amount that Colin and his company can contribute on his behalf to the plan for 2020? a. $25,000. b. $57,000. C. $63,500. d. $64,000.
Colin owns and operates Colin’s Creative Coaching (3C), a sole proprietorship, 3C sponsors a 401(k)/profit-sharing plan. Colin had net income of $200,000 and paid self-employment taxes of $20,000 (assumed) during the year. Assuming Colin is over the age of 50, what is the maximum amount that Colin and his company can contribute on his behalf to the plan for 2019? $25,000 $56,000 $62,000 $63,000
Ahmad, age 55, is employed by BB Trucking Company as a tire repair specialist. He earns $62,000 per year and received an allocation of $40,000 to his employer-provided profit sharing plan for the year. If BB Trucking does not match employee deferrals, what is the maximum amount Ahmad can defer to his 401(k) plan for the 2019 plan year? $16,000 $22,000 $19,000 $25,000
Jordan owns and operates Jordan's Exotic Journeys (JEJ), a sole proprietorship. JEJ sponsors a profit- sharing plan. Jordan had net income of $150,000 and paid self-employment taxes of $20,000 (assumed) during the year. Jordan has decided to make a 15% contribution for her employees for the year. Assuming Jordan is over the age of 50, what amount will she contribute for herself to the plan for 2019? a. $16,957. b. $18,261. c. $28,000. d. $56,000.
Dean has earned $71,000 annually for the past six years working as an architect for WCC Inc. Under WCC's defined benefit plan (which uses a seven-year graded vesting schedule) employees earn a benefit equal to 4.0 percent of the average of their three highest annual salaries for every full year of service with WCC. Dean has worked for six full years for WCC and his vesting percentage is 80 percent. What is Dean's vested benefit (or annual retirement benefit he has earned so far? Multiple Choice O $17,040 $56,800 $13,632
In the year 2024, Albert earned $100,000 per annum and contributed El and CPP in Alberta at the maximum amount. Since Albert was a full-time employee, his company matched El at 1.4% and CPP. Make a t4
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Dean has earned $75,000 annually for the past seven years working as an architect for WCC Inc. Under WCC's defined benefit plan (which uses a 7-year graded vesting schedule) employees earn a benefit equal to 4.5% of the average of their three highest annual salaries for every full year of service with wCC. Dean has worked for seven full years for WCC and his vesting percentage is 99%. What is Dean's vested benefit (or annual retirement benefit he has earned so far)? Multiple Choice $23,625 $74,250. $23,389. $0.
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During the last five months of the year, Dwana opens a new Internet telecommunications business called Dwan-Com. Dwan-Com bills 50,000 of revenues, but receives only 40,000 cash. Dwan-Com incurs 3,000 of supply expenses, and 41,000 of labor costs. Dwan-Com pays for 2,200 of the supplies and 38,000 of the labor costs in the current year. a. What is Dwan-Coms taxable income if it elects the cash method of accounting? b. What is Dwan-Coms taxable income if it elects the accrual method of accounting? c. What method of accounting do you recommend that Dwan-Com elect?
Shelly has 200,000 of QBI from her local jewelry store (a sole proprietorship). Shellys proprietorship paid 30,000 in W-2 wages and has 20,000 of qualified property. Shellys spouse earned 74,400 of wages as an employee, they earned 20,000 of interest income during the year, and they will be filing jointly and using the standard deduction. What is their QBI deduction for 2019?

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