Chee Is a Key Employee of an H

Essay

Chee is a key employee of an H.R 10 (Keogh) defined contribution plan (a profit sharing plan) created by a partnership.Answer each of the following independent questions.
a.During 2019, $7,400 is contributed to the H.R.10 plan for Chee.What amount is deductible if his earned income is $45,000 (after the deduction for one-half of self employment tax)?
b.In 2019, $8,020 is contributed to the H.R.10 (Keogh) plan on Chee's behalf.If his earned income is $36,000 (after the deduction for one-half of self employment tax), what deduction, if any is allowed?
c.The partnership had a bad year in 2019, and only $820 was contributed to the H.R.10 plan on
Chee's behalf.He earned only $700 during 2019.Calculate Chee's allowable deduction.