**Problem 9-35 (LO. 6)**Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24%, and she is 42 years old.**a.** What is the maximum amount Amber can elect for salary deferral treatment for 2020?- **$19,500** ✔**Feedback****b.** If Amber elects salary deferral treatment for the above amount, how much can she save in taxes?Her tax liability for 2020 would be reduced by **$____** ✖**Feedback****c.** What is the recommended amount that Amber should elect as salary deferral treatment for 2020?- **$19,500** .

Answer a: The maximum amount that Amber can elect as per section 401(k) plan salary deferral for…

Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2020? 19,500 v Feedback b. If Amber elects salary deferral treatment for the above amount, how much can she save in taxes? Her tax liability for 2020 would be reduced by $ х. Feedback c. What is the recommended amount that Amber should elect as salary deferral treatment for 2020? 19,500 v.

Amber's employer, Lavender, Inc., has a § 401(k) plan that permits salary deferral elections by its employees. Amber's salary is $99,000, and her marginal tax rate is 24% and she is 42 years old. a. What is the maximum amount Amber can elect for salary deferral treatment for 2020? 19,500 v Feedback b. If Amber elects salary deferral treatment for the above amount, how much can she save in taxes? Her tax liability for 2020 would be reduced by $ х. Feedback c. What is the recommended amount that Amber should elect as salary deferral treatment for 2020? 19,500 v.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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