Desmond is 25 years old, and he participates in his employer’s 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmond’s saver’s credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.)a. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $34,000. EXHIBIT 13-8 2021 Applicable Percentages for Saver's Credit by Filing Status and AGIApplicable PercentageJoint Filers AGI0 to $39.500$39,501 to $43,000$43,001 to $66,000Heads of Household AGI0 to $29,625$29,626 to $32,250$32,250 to $49,500Above $66,000Above $49,50050%2010No credit availableAll Other Filers AGI0 to $19.750$19,751 to $21,500$21,501 to $33,000Above $33,000

The amount you make over the course of a fiscal year before any deductions is your yearly gross income. Your annual gross income includes all of your earnings, not just your pay. Knowing your annual gross income is crucial because you use it to guide important financial decisions. Your ability to create an accurate budget and lead a healthier financial life will be enhanced by knowing your annual income.Answer a. Desmond will be included in "all other filers AGI" because he is single and has no dependents. His AGI is 34,000. Therefore, his AGI is above 33,000 there is no credit available for him. Hence, maximum savers credit of D is 0

Business

Accounting

Desmond is 25 years old, and he participates in his employer’s 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmond’s saver’s credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.) a. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $34,000.

Desmond is 25 years old, and he participates in his employer’s 401(k) plan. During the year, he contributed $3,000 to his 401(k) account. What is Desmond’s saver’s credit in each of the following alternative scenarios? (Use Exhibit 13-8) (Leave no answer blank. Enter zero if applicable.) a. Desmond is not married and has no dependents. His AGI after deducting his 401(k) contribution is $34,000.

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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