Question 1.1. In a contributory defined contribution pension plan, all of the following are true with the exception of (Points : 4)

a separate account is established for each participant. both the employee and employer can make contributions to the plan. amounts are contributed to the plan based upon a specific formula. retirement benefits are a fixed amount based on the level of compensation earned by the employee during the working years.

Question 2.2. Vera has a key supplier for her business that was facing cash flow problems, which would impair Vera's ability to get shipments of key components for her production. Vera made a $10,000 loan to the supplier. Unfortunately the supplier filed for bankruptcy and has gone out of business without repaying Vera. Vera will be able to recognize a loss of (Points : 4)

$10,000. $3,000. $7,000. -0-

Question 3.3. Hope sustained a $3,600 casualty loss due to a severe storm. She also incurred an $800 loss from a theft in the same year. Both the casualty and theft involved personal-use property. Hope's AGI for the year is $25,000 and she does not have insurance coverage. Hope's deductible casualty loss is (Points : 4)

$1,700. $1,800. $4,200. $4,300.