Ms. Jost participates in her employer's Section 401(k) plan, which obligates the employer to contribute 25 cents

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Ms. Jost participates in her employer's Section 401(k) plan, which obligates the employer to contribute 25 cents for every dollar that an employee elects to contribute to the plan. This year, Ms. Jost's salary is $110,000, and she elects to contribute the maximum to her Section 401(k) account.

a. How much of Ms. Jost's salary is taxable this year?

b. Compute the total contribution to Ms. Jost's plan.

c. Compute the employer's deduction for compensation paid to Ms. Jost.

Assume the taxable year is 2018.

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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