Problem 9-32 (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 2021?b. If Amber elects salary deferral treatment for the above amount, how much can she save in taxes?Her tax liability for 2021 would be reduced by $c. What is the recommended amount that Amber should elect as salary deferral treatment for 2021?

401k Plans works as a tax saving tool for employees under which a portion/whole of compensation to…

Answered: Amber's employer, Lavender, Inc., has a…

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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Subject: acc
Mary is self-employed for 2019. Mary estimates her required annual estimated tax payment for 2019 to be $4,000. Mary had a $500 overpayment of last year's taxes which she will apply against her first quarter estimated payment. a. How much should Mary pay with her first quarter estimated tax voucher? b. When is the payment due?
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