Question 18 Kathy is 48 years of age and self-employed. During 2023 she reported $120,000 of revenues and $48,000 of expenses relating to her self-employmentactivities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to a SEP IRA for 2023?Note: Round your final answer to the nearest whole number.Multiple Choice$19,883O $66,000$88,200O $13,383

A simplified employee pension (SEP) is an employee retirement fund (IRA) that may be established by a contractor or a self-employed person.Small companies and self-employed people use SEP IRAs to fulfill their retirement fund requirements.SEP IRA contribution thresholds are cumulative and often greater than those of traditional IRAs and 401(k)s.The employer is not in charge of investment decisions. Instead, the IRA trustee decides which contributions are eligible, and individual employee account owners make their own investment choices. In addition, the trustee receives donations, sends annual accounts, and files all necessary records with the IRS.ParticularsAmount ($)Amount ($)Revenues 120,000 Less: Expenses (48,000) Income from self-employment (a) 72,000 Maximum contribution percentage for self employed person (b)18.5870% Maxmimum contribution limit for self employed person (a x b) 13,383 Note:The contribution limit for self employed person is 18.587045% or approximately 18.60% of net profit. The maximum amount she can contribute to a simplified employee pension (SEP) IRA is $13,383.Option (d) $13,383 is correct.