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jok3333 [9.3K]
3 years ago
7

During 2018, Jerry is a self-employed therapist, and his net earned income is $187,600 from his practice. Jerry's SEP Plan, a de

fined contribution plan, states that he will contribute the maximum amount allowable.
Calculate Jerry's contribution.
Business
1 answer:
DerKrebs [107]3 years ago
3 0

Answer:

$55,000

Explanation:

A Simplified Employee Pension (SEP) Plan is used in the United States by employers or self-employed persons to provide retirement benefits for themselves and their employees

As stated by the Internal Revenue Service (IRS), the contributions that can be made to each employee’s SEP-IRA each year is which one is lower between 25% of compensation and the maximum of $55,000 for 2018.

We can then calculate as follow:

1. Jerry's contribution calculation = 25% × $187,600 =  46,900.

2. Maximum allowable = $55,000.

Since a defined contribution plan states that Jerry will contribute the maximum amount allowable and the maximum for 2018 is $55,000, Jerry's contribution will therefore be $55,000.

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Assume the spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. What is the minimum price that a six-month Ame
Rama09 [41]

Answer:

2 cents

Explanation:

The spot price = $0.7000 = 70 cents, The forward rate = $0.6950 = 69.5 cents and the call option with striking price = $0.6800 = 68.00 cents

The annualized six month rate = 3 1/2 % = 3.5 %, therefore the rate = r/n, where n is the number of period per year = 2. Therefore r/n = 3.5% / 2 = 0.035 / 2 = 0.0175

The minimum price = Maximum (spot price - striking price, (forward rate - striking price) / (1 + 0.0175), 0) = Maximum(70 - 68, (69.5 - 68)/ 0.0175, 0)

Minimum price = Maximum (2 , 1.47, 0) = 2 cents

4 0
3 years ago
g The "monetary base" is simply: a. the total of all currency in circulation, outside banks b. the total vault cash held among a
Zanzabum

Answer:

e. the total of currency in circulation, plus depository institution reserves and vault cash

Explanation:

Monetary base is a concept in money supply that measures highly liquid assets in an economy.

It includes all cash that is in circulation in the economy and those deposits that are held as reserves by the central bank from commercial banks. Cash in bank vaults are also included because they are readily available to the economy.

For example if there is $200 million in circulation and there is $13 billion in the central bank as reserves from commercial banks, the total monetary base is $13.2 billion

6 0
3 years ago
What are the fundamentals of a wealthy life?
Alenkinab [10]

Answer:

  • Avoiding debt.
  • Budgeting properly.
  • Setting short-term and long-term goals.
  • Investing in yourself.
  • Diversifying your assets.
  • An understanding of risk and reward

8 0
3 years ago
Read 2 more answers
Reedy Company reports the following information for 2012:
asambeis [7]

Answer:

Ending WIP= $13,500

Explanation:

<u>First, we need to calculate the factory overhead:</u>

Factory overhead= 25,000*0.75= $18,750

<u>Now, the ending WIP inventory:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

68,250 = 11,000 + 27,000 + 25,000 + 18,750 - Ending WIP

Ending WIP= $13,500

4 0
3 years ago
Which type of diversity might be an issue in the situation described in the case
Sonbull [250]

The type of diversity issue that the case described was <u>E. age</u>.

<h3>What is age discrimination?</h3>

Age discrimination is a diversity issue that involves an employer treating its employees with less favor because of their age.

<h3>Answer Options:</h3>

a. r...

b. opinions and values

c. s.... orientation

d. g.....

e. age

Thus, in the lawsuit that Guido and Rankin brought against the Mount Lemmon fire district, the diversity issue was an age issue.

See the attachment for the complete question and answer options.

Learn more about workplace age discrimination here: brainly.com/question/7239617

Download docx
8 0
2 years ago
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