Susan Is a Self-Employed Accountant with a Qualified Defined Contribution

Multiple Choice

Susan is a self-employed accountant with a qualified defined contribution plan (a Keogh plan) .She has the following income items for the year:
Earned income from self-employment
$50,000
Dividend income
8,000
Interest income
2,000
Net short-term capital gain
12,000
Adjusted gross income
$72,000
​
What is the maximum amount Susan can deduct as a contribution to her retirement plan in 2016,assuming the self-employment tax rate is 15.3%?

A) $9,235.
B) $12,000.
C) $46,000.
D) $46,468.
E) None of the above.