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.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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.
Transcribed Image Text: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.
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