Dimitri operates Downtown Discount Pharmacy, a sole proprietorship. Downtown Discount Pharmacy sponsors a profit sharing plan. Dimitri had net income of $205,000 and paid self-employment taxes of $21,263 for the year. If Dimitri makes a 15% of salary contribution on behalf of all of his employees to the profit sharing plan, how much is the contribution to the profit sharing plan on behalf of Dimitri? $22,642 $25,352 $26,732 $30,750

Dimitri operates Downtown Discount Pharmacy, a sole proprietorship. Downtown Discount Pharmacy sponsors a profit sharing plan. Dimitri had net income of $205,000 and paid self-employment taxes of $21,263 for the year. If Dimitri makes a 15% of salary contribution on behalf of all of his employees to the profit sharing plan, how much is the contribution to the profit sharing plan on behalf of Dimitri? $22,642 $25,352 $26,732 $30,750

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 19CE

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