Aztec Clay Distributor is a family owned business that is owned by Alice, Bill, Chad and...
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Aztec Clay Distributor is a family owned business that is owned by Alice, Bill, Chad and Zion. Alice and Bill are over 50. Zion is not an employee, rather a silent or somewhat silent partner. Alice and Bill are married and Chad is their 25-year-old son who has a degree in Soil Science from Dhaka University in Bangladesh. Aztec sponsors a 401(k) plan. The employee census information is in the chart below. Employee Ownership Salary. Alice Bill Chad Dave Erin Frank Haley Irish 30% Jen 3% 4% 0% Ginger 0% 0% 0% 0% 0% 0% Deferral Plan Balance $330,000 $20,000 $400,000 Officer $300,000 $20,000 $130,000 $10,000 $140,000 $15,000 $50,000 $8,000 $180,000 $15,000 $150,000 Officer $40,000 $0 $30,000 $2,000 $20,000 $1,000 $600,000 $20,000 $0 $150,000 $100,000 $50,000 $10,000 $30,000 $10,000 Status $5,000 $2,200,000 $91,000 If Aztec established a profit-sharing plan, what is the most that Aztec could contribute for 2020 to the profit-sharing plan? $1,505,000 Aztec Clay Distributor is a family owned business that is owned by Alice, Bill, Chad and Zion. Alice and Bill are over 50. Zion is not an employee, rather a silent or somewhat silent partner. Alice and Bill are married and Chad is their 25-year-old son who has a degree in Soil Science from Dhaka University in Bangladesh. Aztec sponsors a 401(k) plan. The employee census information is in the chart below. Employee Ownership Salary. Alice Bill Chad Dave Erin Frank Haley Irish 30% Jen 3% 4% 0% Ginger 0% 0% 0% 0% 0% 0% Deferral Plan Balance $330,000 $20,000 $400,000 Officer $300,000 $20,000 $130,000 $10,000 $140,000 $15,000 $50,000 $8,000 $180,000 $15,000 $150,000 Officer $40,000 $0 $30,000 $2,000 $20,000 $1,000 $600,000 $20,000 $0 $150,000 $100,000 $50,000 $10,000 $30,000 $10,000 Status $5,000 $2,200,000 $91,000 If Aztec established a profit-sharing plan, what is the most that Aztec could contribute for 2020 to the profit-sharing plan? $1,505,000
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To determine the maximum contribution Aztec Clay Distributor can make to the profitsharing plan for 2020 we need to consider the rules and limitations ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
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